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Prediction markets show arbitrage gaps ahead of the US election

MarketWatch describes a quick arbitrage setup that highlights inefficiencies in how US presidential prediction contracts are priced.

Reported · Written up by our desk · Fund Industry

Prediction markets continue to show pricing gaps, according to MarketWatch, which points to a quick arbitrage opportunity tied to the US presidential election.

The outlet says the setup illustrates that, despite the growth of prediction markets, contract pricing can remain inefficient.

MarketWatch also frames the episode as evidence that such markets can still be out of alignment long enough to enable short-cycle arbitrage trades.

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