The Bid-Ask Spread Problem: Why Wide Spreads on Kalshi Kill Profitability and How to Trade Around Them
A trader on Kalshi identifies a contract they believe is mispriced. The underlying event—say, a specific economic indicator reaching a particular threshold—appears undervalued at the current market price of $42. The trader wants to buy 10 contracts and exit when the price hits $58, banking … Continue readingThe Bid-Ask Spread Problem: Why Wide Spreads on Kalshi Kill Profitability and How to Trade Around Them