Buying Yes vs Selling No
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On Kalshi, there's a fundamental truth that might surprise some new traders: there's no inherent difference between buying a Yes contract and selling a No contract, or vice versa. Our backend system treats these two actions as essentially the same thing. Let's break it down:
Market Equilibrium: Each Kalshi market is designed to maintain a state of equilibrium. This means that the combined value of all Yes and No contracts for a given market always equals $1.
Interconnected Trades: When you buy a Yes contract, you're essentially betting on the event occurring. Selling a No contract is equivalent to betting on the event happening (you are short on the event not happening). Both actions have the same impact on the market's equilibrium.
No Preferential Treatment: Kalshi's system doesn't favor one side over the other. Whether you're bullish or bearish on a particular outcome, your trade has the same effect on the market's dynamics.
While the underlying mechanics are the same, the choice between buying Yes or selling No can be a matter of personal preference or trading strategy. Some traders may find it more intuitive to think in terms of buying a Yes contract, while others may prefer the mindset of selling a No contract. Ultimately, the key is to understand the market dynamics and make trades that align with your beliefs and risk tolerance.
If you still need help, please contact Kalshi support . We have a small but mighty team ready to help you out with any issues or questions you might have. All of the Kalshi support team is US-based and human.