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...
That'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.
Huh 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…