Arbitrage in Prediction Markets
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In the last post, we talked on the finer details when running a funding arb;
This post - we are going to discuss arbitrage in prediction markets. This is a strategy I ran, actually up to not too long ago.
We are going to look at specific, tradable markets, run some exercises, historical trades, talk about the technologies required to run the stack, challenges in automation, determining capacity and the whole lot.
It’s going to be an information-dense post. I got my coffee. You?
Motivation
If a picture can speak a thousand words, here is one: