The prediction market has recently seen frequent arbitrage opportunities. Many traders are profiting from information asymmetry—especially as the launch of new assets accelerates, making this phenomenon even more apparent.



The core idea is actually quite simple: when the quotes for the same asset on two platforms are significantly inconsistent, it's time to act. Take SpaceX, with a market cap of over 2 trillion dollars, as an example. One platform opens at around 1 dollar, while the prediction market on the other side reports 6 dollars. The key point is that the bid-ask spreads on both sides are not large—under such circumstances, arbitrage opportunities arise.

But be cautious of a trap: sometimes you do see price differences, but the spreads on both sides are wide. In this case, the profit margin might be eaten up, making it easy to incur losses. So, to judge whether you can make a profit, you need to look not only at the absolute value of the price difference but also at liquidity. That’s the key.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
MysteriousZhangvip
· 1h ago
Haha, isn't this just gambling on liquidity? The price difference is big, but the spread is wide, so it's pointless.
View OriginalReply0
ShibaMillionairen'tvip
· 1h ago
Wait, SpaceX from 1 to 6? The price difference is outrageous... Is the liquidity really that deep?
View OriginalReply0
TokenomicsPolicevip
· 1h ago
Haha, I know this trick well, but spread is the real killer... --- Same old story, wide spreads but terrible liquidity, can't really get out --- I saw that SpaceX order, the spread was ridiculously wide, all the profit was eaten up --- Got stuck, the key is whether it can really be executed... --- Newbies are easily blinded by the spread, only after stepping into this pit do they understand --- Six times the temptation, but as soon as I place an order, slippage kills me, a blood and tears story --- Liquidity, ah liquidity, this is the key to arbitrage --- The price looks good, but when I place an order, no one is willing to take it... so frustrating
View OriginalReply0
BlockTalkvip
· 2h ago
Wow, a 6x price difference? How much information gap would it take to pull that off? You really dare to buy it.
View OriginalReply0
DegenDreamervip
· 2h ago
It's the same story again. When the spread is large, you want to buy the dip? Bro, you need to look at liquidity, or you'll just be eaten by the order flow. --- I looked at that SpaceX order. When the spread widens, the profit disappears, and that's really a trap. --- The prediction market is now a battle of information. Those who react quickly get the gains, while the slow ones just get the leftovers. --- Always talking about arbitrage opportunities, but when it comes to actual trading, it's just chasing highs and getting caught. I'm very familiar with this. --- The key is to choose a platform with good liquidity; otherwise, no matter how big the spread is, it's useless. --- There was indeed an opportunity when a new asset was launched, but you have to act fast. One second late, and you'll be eaten.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)