Worked examples
Winning trade — Election market
"Will Candidate A win the Nairobi gubernatorial?" YES is trading at KSh 45.
You buy 20 shares at an average of KSh 46 (slight slippage). Total cost: KSh 920.
Election day — Candidate A wins. Each share pays KSh 100. You receive KSh 2,000. Profit: KSh 1,080.
Losing trade — Sports market
"Will Harambee Stars qualify for AFCON?" YES is at KSh 70.
You buy 10 shares at KSh 70. Total cost: KSh 700.
Stars lose the qualifier. Your shares pay KSh 0. Loss: −KSh 700.
Selling early to lock profit
You bought NO at KSh 30. After breaking news, NO jumps to KSh 65.
Instead of waiting for resolution, you sell. You receive close to KSh 65 per share — locking in the profit even though the event hasn't happened yet.
These examples are illustrative only. Real trades involve real losses.