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What is a "complete set" in an Augur market?

If owning a complete set set ultimately will have the value as owning the "winning" token, then what advantages are there to having a complete set (as compared to the winning token) in a market?

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A complete set means you own all of the possible results in a given market (scalar, binary or categorical).

After a market is finalized the value of a complete set will be equal to the value of the winning event. The advantages of owning a complete set instead of a sole winning outcome include:

  1. Hedging - you may think you know the winning outcome of a market, but until the reporting from oracles is complete (along with the appeal period if applicable) there are no guarantees. If you believe you own the winning outcome, you can hedge that bet, locking in (most of) your profits before the reporting period is complete, assuming the market agrees with you about the (high) likelyhood of the winning result, and prices the (likely) losing outcomes very cheaply as a result.
  2. Early settlement - You can sell a complete set at any time for the full value of a winning token. You do not have to wait for the market to settle, because no matter what the final outcome is you will receive the full value. Therefore, the market will let you settle early by showing up with one of each possible outcome (complete set).
  3. Arbitrage - Any time the sum of the value of each outcome in a market exceed the value of the complete set, a potential arbitrage opportunity exists for anyone owning the complete set (assuming enough liquidity exists to sell each of those possible outcomes).
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    You should edit (2): You can sell a complete set at any time for the full value of a winning token. You do not have to wait for the market to settle, because no matter what the final outcome is you will get the full value so the market will let you settle early by showing up with one of each possible outcome. – Micah Zoltu Aug 9 '17 at 17:17

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