Polymarket trades: how they work and where PolyArb fits
Polymarket trades execute on a Central Limit Order Book (CLOB) on Polygon using pUSD as the settlement asset. Traders place limit or market (FAK) orders for outcome shares that settle to $1.00 if the outcome resolves YES. If you’re searching “polymarket trades” you likely want to know how orders match, where spreads form, and how tools like PolyArb exploit intra-market arbitrage. PolyArb is a non-custodial bot ($99/month) offering 40ms latency, Telegram and Discord alerts, and a $7.62 minimum guaranteed edge per trade.
How Polymarket trading works
Polymarket runs on Polygon (chain ID 137) and uses pUSD for all trades; gas is sponsored through the Polymarket Relayer. Markets use the Gnosis Conditional Token Framework (CTF) so each outcome is an ERC-1155 token you can split, merge, and redeem after resolution via UMA. Orders sit in a CLOB; common order types are limit and market (FAK), and tick size is usually $0.01, tightening near price extremes.
Where spreads and arbitrage come from
Spreads appear when best ask prices across outcomes sum to less than $1.00 for binaries or multi-outcome markets. Intra-market arbitrage buys the cheap combination (both YES and NO or a complete set) to capture the difference, called the edge. Historical activity shows arbitrageurs have been a major liquidity sink; between April 2024 and April 2025 they extracted roughly $40M collectively from Polymarket.
Risks you must consider
The arithmetic of a spread is straightforward, but trades aren’t risk-free. Resolution risk (UMA disputes), partial fills and slippage, taker fees (0–1.8% variable by category), smart-contract risk, and settlement timing can all erode profit. Geo-restrictions and Polymarket’s terms also matter: some countries are blocked from opening new orders, and VPN evasion is prohibited.
Where PolyArb helps traders
PolyArb targets intra-market opportunities on Polymarket with 40ms latency versus typical free bots around ~800ms. For $99/month you get a non-custodial bot, Telegram and Discord alerts, and a $7.62 minimum guaranteed edge per trade. The bot routes orders through the CLOB, handles order placement, and notifies you when a qualified spread appears, but you still face the operational and protocol risks listed above.
Start capturing Polymarket edges with PolyArb
Subscribe to PolyArb for $99/month to get 40ms latency, Telegram and Discord alerts, and a $7.62 minimum guaranteed edge on qualifying trades.
FAQ
- What does a Polymarket trade settle to?
- Each winning outcome token redeems to $1.00 after resolution; losing tokens redeem to $0.00. Settlement follows the UMA optimistic oracle process.
- How are fees on Polymarket charged?
- Taker fees vary by category and currently range from 0% up to 1.8%. Maker fees are zero. The Geopolitics category is fee-free.
- Can PolyArb place trades for me?
- PolyArb is non-custodial and routes orders through the CLOB; it automates detection and order placement but you retain wallet control. It’s a subscription service ($99/month) with low-latency alerts.