Back to blogTracking spreadsheet: Google Sheets or Excel to track spreads Price alerts: Set alerts when a spread exceeds your threshold Sufficient capital: Arbitrage requires volume to be profitable Transaction fees: They can eat your profit Slippage: The price can move between your analysis and execution Counterparty risk: Centralized platforms can have issues
StrategyAdvanced
The Ultimate Guide to Arbitrage on Polymarket
March 10, 2026 12 min
What Is Arbitrage on Polymarket?
Arbitrage involves exploiting price differences between markets to generate risk-free (or near risk-free) profit.
Types of Arbitrage
Internal Arbitrage
On Polymarket, the sum of "Yes" and "No" prices should always equal $1. When it doesn't, there's an opportunity.
Example: If "Yes" is at $0.45 and "No" at $0.52, the total is $0.97. You buy both for $0.97 and earn $0.03 guaranteed (3% profit).
Cross-Platform Arbitrage
Compare prices on Polymarket with Kalshi or other prediction markets. Price differences are common on less liquid markets.
Required Tools
Risks to Know
Conclusion
Arbitrage is an advanced but very effective strategy. Start small, test your methods, and gradually increase your capital.