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The presidential market on InTrade was quite liquid. $300k of volume with a bid-ask spread of like 0.2%.

Do you know why there was such a persistent gap for arbitrage between InTrade and BetFair? I don't know about BetFair's vig and rules, but InTrade has only a couple of small fixed transaction costs. ($5/mo to have an account and $10 to pull your money out, I think.) Seems like it should have been eaten up.



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