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 participant terminal to purchase a financial product for one of the possible outcomes, i; and electronically computing a price for the requested 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 is the outcome requested by the participant, t is a time index counter designating the current transaction, t−1 is a time index counter designating the last previous transaction, P i t is the price for the purchase requested by the participant K=c exp [rj/365], c is a scaling constant, r is a constant proportional to the short term annualized interest rate, j is the relative Julian date since the financial activity was started, π i t−1 is the last previously calculated pricing probability for outcome i Kπ i t−1 is the last previously calculated price for outcome i, and α t is a price adjustment parameter, having a value between 0 and 0.1