
Trading Tools
Automated BotsMonitor probability movements and execute strategies. Buy when the market underprices an outcome, sell when it corrects. Space’s 0% maker fees and transparent order book make algorithmic trading viable. Example strategy: Mean reversion bot that buys YES shares when probability drops below historical average and sells when it rises above threshold. Arbitrage Scanners
Compare Space prices to Polymarket, Kalshi, or traditional trading markets. Execute when spreads exceed transaction fees.
Multi-outcome markets create additional arbitrage opportunities - if NO shares for one outcome are mispriced relative to YES shares for another, convert and capture the spread. Portfolio Managers
Track positions across multiple markets, calculate total PnL, manage risk exposure. With leverage available, capital efficiency matters. Portfolio tools help users optimize allocation and monitor liquidation risk. Alert Systems
Notify users when:
- Probability hits specific threshold
- Large trades execute (whale watching)
- Market approaching resolution
- Liquidation risk increases
Analytics Platforms
Market DashboardsVisualize trends, volume, and liquidity across markets. Answer questions like:
- Which outcomes are moving?
- Where is capital flowing?
- What do traders believe?
- How has sentiment changed over time?
Track top performers across markets. Show:
- Total ROI over time periods
- Win rate on resolved markets
- Average position size
- Risk-adjusted returns
Backtest trading strategies against historical market data. Study:
- Market behavior at different time horizons
- When probabilities stabilize before resolution
- Correlation between market movements and news events
- Accuracy of prediction markets vs. other forecasting methods
Monitor large trades that significantly move markets. Alert when conviction trades happen. In thin markets, size matters - track who’s making bold predictions and how often they’re right.
Data Services
Price FeedsAggregate Space probabilities for external use. Potential applications:
- DeFi protocols using prediction market odds as oracle inputs
- Research firms studying market sentiment
- News organizations tracking real-time sentiment on events
- Traditional finance firms incorporating prediction data
Correlate market movements with breaking news:
- When did the market react to an announcement?
- How fast did probabilities update after news broke?
- What information moved the odds the most?
- Which news sources have the strongest impact?
Compare prediction market probabilities to:
- Social media sentiment (Twitter, Reddit)
- Traditional polling data
- Expert forecasts
- Trading market odds
DeFi Integrations
Collateral ProtocolsUse shares as collateral for loans. YES shares trading at $0.80 have predictable value - lend against them. Create lending pools where users can borrow USDC against their prediction market positions. Yield Strategies
Automated liquidity provision:
- Place limit orders on both sides of order book
- Capture bid-ask spread as profit
- Rebalance as market moves
- Optimize for markets with highest volume/spread ratio
Build options or structured products on prediction markets:
- Call/put options on market probabilities
- Range-bound products (profit if probability stays within range)
- Volatility products (profit from probability swings)
Example: Trading Bot Flow
A bot monitoring BTC price markets:1
Monitor Market
Fetch current probability via REST API.
Subscribe to trades via WebSocket for real-time updates.
Subscribe to trades via WebSocket for real-time updates.
2
Evaluate Opportunity
Compare current probability to historical average.
Check if below entry threshold (e.g., 30%).
Calculate position size based on conviction and risk limits.
Check if below entry threshold (e.g., 30%).
Calculate position size based on conviction and risk limits.
3
Execute Trade
Place limit order slightly below current price.
Pay 0% fee as maker.
Monitor for fill via WebSocket.
Pay 0% fee as maker.
Monitor for fill via WebSocket.
4
Manage Position
Track unrealized PnL as probability changes.
Set exit target (e.g., sell when probability reaches 50%).
Implement stop-loss if needed.
Set exit target (e.g., sell when probability reaches 50%).
Implement stop-loss if needed.
5
Exit
Place limit sell order when target hit.
Or use market order for immediate exit (pays dynamic fee).
Calculate realized PnL.
Or use market order for immediate exit (pays dynamic fee).
Calculate realized PnL.
6
Repeat
Track performance across trades.
Adjust strategy based on results.
Adjust strategy based on results.
