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Understanding Probabilities

On Suri, every market shows a probability — the crowd's best guess at whether something will happen.

Reading the numbers

When you see a market like:

Will it rain in Metro Manila tomorrow?

Yes: 65% — No: 35%

This means:

  • The crowd thinks there's a 65% chance it will rain
  • Yes shares cost ₱0.65 each
  • No shares cost ₱0.35 each
  • If it rains, Yes shares pay ₱1.00 (profit: ₱0.35 per share)
  • If it doesn't rain, No shares pay ₱1.00 (profit: ₱0.65 per share)

Percentages vs Cents

You might see probabilities displayed as either:

  • 65% (percentage)
  • 65¢ (cents)

These mean the same thing. 65¢ = 65% = the share costs $0.65 USD. Suri is standardizing to percentages for clarity.

When to bet

The key question: Do you think the real probability is different from what the market shows?

  • Market says 65% but you think it's actually 85%? → Buy Yes (the market is underpricing it)
  • Market says 65% but you think it's only 30%? → Buy No (the market is overpricing it)
  • Market says 65% and you think that's about right? → Don't bet (no edge)

This is called finding edge. You make money when you're consistently better at estimating probabilities than the crowd.

Common mistakes

  1. Buying Yes at 95% because you're "sure" — Even if you're right, you're risking ₱0.95 to win ₱0.05. The risk/reward is terrible unless you're >95% confident.
  2. Ignoring the price — "I think yes" isn't enough. The question is always "I think yes AND the current price is too low."
  3. Not thinking in probabilities — Nothing is 100%. Even "sure things" have some chance of going wrong. Price accordingly.

Next: LMSR vs Pari-mutuel Markets →