1. A computer implemented method for automatically setting prices of financial products in a financial activity having a plurality of possible outcomes, comprising the steps of: receiving a first request from a first participant terminal of a plurality of participant terminals to purchase a financial product for one outcome of the possible outcomes, i; and electronically computing a price for the financial product, in response to the first request, based at least in part on the following first formula: 
 P i t =Kπ i t =K[π i t−1 +α t π i t−1 (1−π i t−1 )] where i designates the one outcome requested by the first participant, t is a time index counter designating the current purchase requested by the first participant, t−1 is a time index counter designating a last previous transaction purchase, P i t is the price for the financial product, K=c exp[rj/365], c is a money amount used as a scaling constant, r is a constant proportional to a short term annualized interest rate, j is a number of days since the financial activity was started, π i t is the current pricing probability for outcome i, π i t−1 is the last previously computed pricing probability for outcome i, α t is a price adjustment parameter, having a value greater than 0 and less than 0.1, and delivering the price for the financial product of the first request to the first participant terminal.