--- title: How Prediction Market Arbitrage Works (Polymarket, Kalshi) description: Prediction market arbitrage exploits pricing inefficiencies on platforms like Polymarket and Kalshi. When YES and NO contracts on the same event sum to less... canonical: https://daily.dev/posts/how-prediction-market-arbitrage-works-polymarket-kalshi--irc3dxvey twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: How Prediction Market Arbitrage Works (Polymarket, Kalshi) | daily.dev og:description: Prediction market arbitrage exploits pricing inefficiencies on platforms like Polymarket and Kalshi. When YES and NO contracts on the same event sum to less... og:url: https://daily.dev/posts/how-prediction-market-arbitrage-works-polymarket-kalshi--irc3dxvey og:image: https://api.daily.dev/og/posts/IrC3DXVeY.png og:image:alt: How Prediction Market Arbitrage Works (Polymarket, Kalshi) og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # How Prediction Market Arbitrage Works (Polymarket, Kalshi) **[Trevor Lasn](https://daily.dev/sources/trevorlasn)** · 3 min read · 4 upvotes · 0 comments ## Summary Prediction market arbitrage exploits pricing inefficiencies on platforms like Polymarket and Kalshi. When YES and NO contracts on the same event sum to less than $1.00, buying both guarantees profit regardless of outcome. The gap exists due to new information, low liquidity, or cross-platform differences. While individual profits are small (e.g., $0.03 per pair), they scale linearly and are risk-free. However, fees, slippage, execution speed, and liquidity constraints limit profitability for manual traders. Most successful arbitrage is automated, with bots monitoring hundreds of markets simultaneously to capture fleeting opportunities. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [The “Truth Machine”: A Deep Dive into Prediction Markets](https://daily.dev/posts/the-truth-machine-a-deep-dive-into-prediction-markets-sxz6rpvom) · Coins Bench · 0 upvotes · 0 comments - [Top 10 Polymarket Trading Strategies \(With Examples\)](https://daily.dev/posts/top-10-polymarket-trading-strategies-with-examples--krg39wrpv) · Coins Bench · 1 upvotes · 0 comments - [Newly created Polymarket accounts win big on well-timed Iran ceasefire bets](https://daily.dev/posts/newly-created-polymarket-accounts-win-big-on-well-timed-iran-ceasefire-bets-lrta7rsvh) · Hacker News · 0 upvotes · 0 comments - [How To Use Prediction Market Data Like Hedge Funds \(Complete Roadmap\)](https://daily.dev/posts/how-to-use-prediction-market-data-like-hedge-funds-complete-roadmap--x7oaaupxd) · Coins Bench · 0 upvotes · 0 comments --- Tags: [#automation](https://daily.dev/tags/automation), [#crypto](https://daily.dev/tags/crypto), [#fintech](https://daily.dev/tags/fintech) [View this post on daily.dev](https://daily.dev/posts/how-prediction-market-arbitrage-works-polymarket-kalshi--irc3dxvey) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"How Prediction Market Arbitrage Works (Polymarket, Kalshi)","url":"https://daily.dev/posts/how-prediction-market-arbitrage-works-polymarket-kalshi--irc3dxvey","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/how-prediction-market-arbitrage-works-polymarket-kalshi--irc3dxvey"},"datePublished":"2026-01-29T13:24:27.056Z","dateModified":"2026-01-29T13:24:46.266Z","description":"Prediction market arbitrage exploits pricing inefficiencies on platforms like Polymarket and Kalshi. 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