{"id":253167,"date":"2026-08-11T10:27:05","date_gmt":"2026-08-11T14:27:05","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?post_type=glossary-terms&#038;p=253167"},"modified":"2026-08-17T16:37:31","modified_gmt":"2026-08-17T20:37:31","slug":"state-price-security","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/state-price-security\/","title":{"rendered":"State-Price Security"},"content":{"rendered":"\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/ndcdyn.interactivebrokers.com\/mkt\/?src=glossGenAcc&amp;url=%2FUniversal%2FApplication\" target=\"_blank\" rel=\"noreferrer noopener\">Open Account<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A state-price security pays a fixed amount, conventionally $1.00, if a specified future state of the world occurs and nothing otherwise. Also known as an Arrow-Debreu security after the economists who formalized the concept, it is the theoretical building block from which more complex contingent claims can be assembled. Because the payout is fixed and known in advance, the price of the security carries information about the probability the market assigns to that state, which is what makes binary event contracts useful as forecasting instruments as well as trading instruments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/ibkr-climate-energy\/the-value-of-climate-prediction-markets\/\">The Value of Climate Prediction Markets<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/ibkr-climate-energy\/prediction-markets-might-already-be-the-best-source-for-todays-weather-forecast\/\">Prediction markets might already be the best source for today\u2019s weather forecast.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A state-price security pays a fixed amount, conventionally $1.00, if a specified future state of the world occurs and nothing otherwise. Also known as an Arrow-Debreu security after the economists who formalized the concept, it is the theoretical building block from which more complex contingent claims can be assembled. Because the payout is fixed and known in advance, the price of the security carries information about the probability the market assigns to that state, which is what makes binary event contracts useful as forecasting instruments as well as trading instruments.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13269,13251],"class_list":["post-253167","glossary-terms","type-glossary-terms","status-publish","traders-glossary-trading-terms-s","traders-glossary-trading-alphabet"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v28.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"A state-price security pays a fixed amount, conventionally 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