Recently, I took a hit in a certain prediction market and want to remind everyone — the difference in the spread can really be deadly.

Just look at this example. For the same asset, the quote at 7 is one thing, but as it drops to 5, there's an immediate cliff-like decline, and dropping to 3 is even more disastrous. Every time the price falls to a lower level, the spread widens dramatically, and liquidity evaporates directly.

I was holding a full long position, but what happened? I couldn't sell at all. Only when it dropped to the bottom (at 3) could I find over $6,000 in buy-in funds. It feels like you have to jump from the top of a mountain to survive — your health bar is directly halved.

When choosing a market, you really need to understand the spread structure clearly. Never hold heavy positions in areas with insufficient liquidity.