Strategy · Arbitrage

CROSS-VENUE EVENT PAIRS

NeutralDefined riskAdvanced

Overview

Trade the same event across two venues (e.g., Kalshi vs. Polymarket equivalent). Buy the cheaper side and sell the more expensive side for venue-spread arbitrage.

Setup

1.Map equivalent contracts across venues — confirm resolution criteria are identical.
2.Open accounts on each venue and pre-fund both.
3.Trigger when cross-venue spread exceeds estimated round-trip cost.
4.Execute both legs within seconds to lock spread.
5.Settle and rebalance funding weekly.
6.Track venue-specific risks (regulatory, liquidity, withdrawal speed).

Max profit

Captured cross-venue spread × notional.

Max loss

Venue insolvency, withdrawal hangs, resolution-criteria mismatch.

Breakeven

Spread captured > combined fees on both venues.

When to use

When venues consistently misprice the same event due to user-base differences.

When to avoid

When fees consume the spread. On venues with poor liquidity or regulatory uncertainty.