- Step 1 - LordsOfOdds floats predictions on the site with a specific price
"India will win more than 3 Gold medals at the 2008 Olympics" at a price of  30. LordsOfOdds will give users 100 per unit of the prediction if it comes true and nothing if it does not come true.
i.e. LordsOfOdds thinks there is a 30% chance of India winning more than 3 Gold medals at the 2008 Olympics.
- Step 2 - Players buy and sell the predictions
Players buy predictions they think will come true and sell / short (?) predictions they don't think will come true
e.g. "India will win more than 3 Gold medals at the 2008 Olympics" is priced at 30. PlayerHari thinks that India has a better than 30% chance of winning more than 3 Gold medals, so he buys 100 units of the prediction.
- Step 3 - As people buy and sell, prices move up and down respectively
The more a prediction is bought, the more its price goes up. And the more it is sold, the more its price falls. As the outcome of a prediction starts becoming clear, players keep trading to maximise their profits (or minimize their losses).
e.g. Say half way through the Olympics India has won only 1 Gold Medal. And players have sold the prediction a lot bringing down the price of that prediction to 20. So PlayerHari decided to sell off his 50 units at a price of 20 each since he does not feel as confident anymore that the prediction will come true.
- Step 4 - Based on the outcome, the predictions have a final value
Once the result of predictions are known, LordsOfOdds credits / debits the accounts of players with the final value of the prediction. Mostly (?) it will be worth  100 if the prediction came true and worth 0 if it did not.
e.g. Say towards the end of the Olympics, India pulls off a great show and finally wins a total of 4 Gold Medals. Since the prediction "India will win more than 3 Gold Medals at the 2008 Olympics" has come true, each unit of it will finally be worth 100. So for 50 units of the prediction PlayerHari still holds, he will get 50 x 100 = 5000 Loots.
Hence, at the end of this prediction PlayerHari is richer by a net amount of 3000. (He bought 100 @ 30 = 3000, Sold 50 @ 20 = 1000, Redeemed 50 @ 100 = 5000)
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