Arbitrage
Locking in a riskless profit by buying and selling the same outcome at different prices on different venues or in mismatched contracts.
If Yes trades at 52 cents on Polymarket and No trades at 44 cents on Kalshi for the same event, buying both costs 96 cents and pays $1 whichever way it resolves. Fees, withdrawal times, access restrictions and slightly different resolution rules eat most of these gaps, which is why they rarely last.
Within one venue, a multi-outcome market whose Yes prices sum to more than $1 offers a sell-side arbitrage; a sum under $1 offers a buy-side one. NegRisk markets exist partly to close this.
Sportsbook-versus-exchange arbitrage is the most common form in practice and the reason sharp bettors watch prediction market prices.
Where you will see it on BetG8
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Frequently asked questions
- What does "Arbitrage" mean?
- Locking in a riskless profit by buying and selling the same outcome at different prices on different venues or in mismatched contracts.
- Why does arbitrage matter for prediction markets?
- Sportsbook-versus-exchange arbitrage is the most common form in practice and the reason sharp bettors watch prediction market prices.