Arbitrage
Polymarket and Kalshi sometimes have different prices on the same event — if the gap is large enough, arbitrage captures a guaranteed profit.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
Arbitrage is simultaneous trading across venues to capture price differences without taking directional risk.
Plain-English explanation
Example: YES on the same event is $0.42 on Polymarket and $0.46 on Kalshi. Buy $1,000 of YES on Polymarket, sell $1,000 equivalent of YES on Kalshi. Net: hedged, ~4 cents per contract profit. In practice, fees and slippage eat most of the obvious spreads.