Liquidity on Kalshi, Polymarket ‘too thin’ for institutional use
Patchy trade flows cause outsize market impact for financial events, research from Risk.net shows
Prediction markets Kalshi and Polymarket boast combined trade volumes nearing $100 billion since inception yet the headline numbers mask patchy liquidity and high levels of market impact for contracts relating to financial and economic events, analysis by Risk.net reveals.
Institutional market-makers are weighing whether to enter these fast-growing platforms, but concerns over liquidity are
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