Cross-Market Arbitrage

Arbitrage on Polymarket involves finding price discrepancies between related markets. For example, if an event has multiple sub-markets whose probabilities should sum to 100% but actually sum to 105%, you can sell all outcomes and lock in a guaranteed profit. Other opportunities arise between correlated markets — if the price of "X wins election" differs significantly from the implied probability in "X's party wins," there may be an arbitrage opportunity.

These opportunities are typically small and short-lived, but they carry minimal risk. Speed is essential — use automated tools to detect and execute arbitrage before others close the gap..