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Analysis

What Moves Prediction-Market Prices in CFB Futures

Prediction-market prices move on three forces: order-book liquidity, incoming news, and the model's fair value. Here is how each shows up in CFB title contracts.

By The Model Desk · 2026-08-02
Analysis
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Key takeaways
  • Three forces move prediction-market prices: order-book liquidity, incoming news, and the model's fair value estimate.
  • Notre Dame prices at a 13c best price against an 11.2% model fair value, a spread that reflects vig and thin depth rather than a firm edge.
  • Ohio State's best price of 12c sits close to its 11.1% fair value, one of the tighter reads on the title board.
  • The gap between best price in cents and model fair value in percent is the clearest visible signal of how efficiently a contract is priced.
  • Across the title board, best prices run 1 to 2 cents above fair value, the standard cost of crossing the spread on futures.

Prediction-market prices move for three reasons: order-book liquidity, incoming news, and the pull of a model's fair value. Each leaves a fingerprint on the quote. On the CFB national title board, that fingerprint is visible in the gap between a contract's best price in cents and the model's de-vigged fair value in percent.

How does liquidity move a futures price?

Liquidity is depth: how much size rests on the order book near the current quote. CFB title futures are thin relative to major-league markets, so a single large order can clear the top of the book and shift a contract a few cents before new sellers step in. That is why prices can jog around without any news at all.

Thin depth also widens the spread between where a contract can be bought and where the model values it. Notre Dame's 13c best price against an 11.2% fair value is the widest of the leaders. Ohio State, at 12c versus 11.1%, sits tighter. The narrower gap is the signature of a more liquid, more efficiently priced contract.

How does news reprice a contract?

News is the second force: anything that changes the probability of an outcome should change its price. Depth charts, transfers, and schedule developments feed expectations, and a market that is paying attention re-rates the affected contracts quickly. In an efficient book, the quote moves toward the new fair value within minutes.

In a thin book, the same news can overshoot. A burst of one-directional orders can push a contract past where the model would settle it, then drift back as liquidity returns. Tracking fair value alongside the live price is how that overshoot becomes legible instead of just noise.

Where does the model's fair value fit in?

Fair value is the anchor. The model converts power ratings into win probabilities, simulates the path to a title, and strips the vig to produce a single de-vigged estimate. That number is the reference point the price is measured against.

Right now the top of the board is tightly packed: Notre Dame at 11.2%, Ohio State at 11.1%, Oregon at 10.3%, with Texas and Georgia both at 9.6% and Indiana at 8.2%. When six teams sit inside three points of fair value, small price moves matter more, because the field is close enough that a couple of cents changes the relative value ranking.

National title fair value, top six
Notre Dame11.2%
Ohio State11.1%
Oregon10.3%
Texas9.6%
Georgia9.6%
Indiana8.2%

What does the price-versus-fair-value gap reveal?

The cleanest read on efficiency is the gap between best price and fair value. Across the leaders, best prices run 1 to 2 cents above fair value: Notre Dame 13c on 11.2%, Ohio State 12c on 11.1%, Oregon 11c on 10.3%, Texas 11c on 9.6%, Georgia 10c on 9.6%, Indiana 9c on 8.2%. That premium is the standard cost of crossing the spread on a thin futures market.

The venue of the best price shifts by team, which is itself a liquidity signal. Kalshi holds the cheapest quote for Ohio State, Oregon, Georgia and Indiana; Polymarket holds it for Notre Dame and Texas. Checking both before trading is how a reader avoids paying an extra cent for nothing. New accounts can offset some of that friction through venue promos such as Kalshi FADE or Polymarket TGSWC.

Best price by contract, national title
Notre Dame13c
Ohio State12c
Oregon11c
Texas11c
Georgia10c
Indiana9c

What should a reader watch?

The takeaway is procedural, not predictive. Watch the gap: when a contract's best price drifts well above fair value, the market is either pricing in news the model has not weighted, or the book has thinned and the spread has widened. When the price sits close to fair value, as Ohio State's does, the contract is being priced efficiently.

Prices and the model can both be wrong, and none of this is financial advice. But the framework holds: liquidity sets how far a price can jump, news sets when it jumps, and fair value sets where it should land.

TeamsNotre DameOhio StOregonTexasGeorgiaIndiana
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Frequently asked questions

Why do prediction-market prices move?

Prices move when order-book liquidity shifts, when news changes expectations, and when the model's fair value diverges from the live quote. On CFB futures, thin depth means a single sizable order can move a contract several cents.

What is the difference between best price and fair value?

Best price is the cheapest live quote across venues, stated in cents. Fair value is the model's de-vigged probability estimate, stated as a percent. The gap between them measures vig and pricing efficiency.

Which national title contract is priced closest to its model fair value?

Ohio State, at a 12c best price against an 11.1% fair value, is among the tightest of the front runners. Notre Dame trades a touch wider at 13c versus 11.2%.

Does the cheapest venue change by team?

Yes. The best price sits on Kalshi for Ohio State, Oregon, Georgia and Indiana, and on Polymarket for Notre Dame, Texas, Miami and LSU. Checking both venues is how a trader avoids overpaying the spread.

Can the model's fair value be wrong?

Yes. Fair value is an estimate, and both prices and the model can miss. The point of tracking the gap is to see where the market and the model disagree, not to guarantee an outcome.

About the author
The Model Desk

The Redshirt Analytics modeling team prices every college football futures contract and tracks the gaps between fair value and live market prices on Kalshi, Polymarket and ProphetX.