I wonder if there's profit to be made by looking at the futures markets, figuring out the implied probability distribution of different events, and then buying prediction markets when there's a mis-match? There sure are many inexperienced players entering predictions markets, just waiting to be fleeced...
replyThat's one of the intended uses of prediction markets! Although much like cryptocurrency arbitrage i assume the margins are small and will quickly be eaten by bigger fish.
replyHuh interesting. I suppose markets with low volume would tend to be the most profitable opportunities in that case? But then maybe they’re low volume because it’s hard to say what will happen…
reply