Plain-English definitions of every concept you need to understand cross-platform arbitrage.
Term
Prediction market arbitrage is the practice of simultaneously buying YES on one platform and NO on the other for the sam…
Term
In prediction market arbitrage, the spread is the difference between $1.00 and the combined cost of YES and NO contracts…
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Two-leg execution is the simultaneous placement of both sides of an arbitrage trade — buying YES on one platform and NO …
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A circuit breaker is an automatic risk control that unwinds an open leg when the second side of an arbitrage trade fails…
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The Kelly criterion is a mathematical formula for calculating the optimal fraction of your bankroll to bet on each trade…
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Complement arbitrage exploits the mathematical identity that YES + NO for the same binary event must equal exactly $1.00…
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Resolution risk is the chance that a prediction market contract resolves differently than expected due to ambiguous word…
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Cross-market arbitrage involves exploiting price differences for the same underlying event or asset across two or more s…
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