- Individuals are beginning to see Polymarket much less as a easy betting place and extra as a classy buying and selling venue the place professionals revenue from small value variations and excellent timing.
One other notable arbitrage alternative happens in a number of final result prediction markets the place the sum of the implied possibilities of all outcomes is lower than 100%. On this situation, the arbitrageur can purchase a place with any doable final result, and one final result is definite to happen, so this technique ensures a risk-free revenue from market mispricing.
From prediction market to high-speed buying and selling ground
Individuals are beginning to see Polymarket much less as a easy betting place and extra as a classy buying and selling venue the place professionals revenue from small value variations and excellent timing.
The technique used is much like that in DeFi, which depends on discovering momentary imbalances in purchase and promote orders and executing trades first, quicker than anybody else.
However for on a regular basis customers, this can be a downside. This implies you’ll usually lose to automated bots and high-speed buying and selling techniques, and even a second of slowness could make a giant distinction, particularly in fast-moving markets.
Associated: Polymarket makes use of Chainlink to ship near-instantaneous market outcomes
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