Imagine having $1.4M in capital. Here's a simple arbitrage play that prediction markets make possible:

You identify an event with significant price movement potential—say, a rare collectible predicted to sell for $20M+. A prediction platform lets you bet on the exact outcome.

The math is straightforward: buy the underlying asset at $20.01M while simultaneously holding a prediction contract worth $25M at settlement. The spread? $5M in pure upside.

This is how prediction markets function—they create pricing discrepancies between the real-world outcome and market prediction. Sophisticated traders exploit these inefficiencies by taking simultaneous positions across related markets.

The key insight? Prediction platforms don't just let you guess outcomes. They create genuine arbitrage opportunities for those who can spot mispricing and execute quickly. Whether you're tracking collectibles, commodities, or market events, the principle remains: where there's a gap between prediction price and actual value, there's opportunity.

For traders with dry powder and quick execution, these platforms have become increasingly relevant.