Settlement method
Settlement with the final result means that before settlement, the winning answer has to be determined in the real world.
After result consensus amongst users, all trades for the one winning answer will be judged at 100% of the potential winnings, all other answers with 0%. Keep in mind that trades "against" other answers will also be judged at 100% as these answers did, in fact, not happen.
Advantages and disadvantages
Pro
- Users will give their most objective prediction, firmly rooted in expected reality.
- Prices converge rapidly, right to the last traders' own expected likelihood of an answer.
Con
- Less motivating for long term question