Comment by traderj0e
20 hours ago
I drew the same analogy. You put up $0.95, a YES gambler only puts $0.05 (ignoring spread); you're providing "insurance" in case of a YES. In theory, even if the market prices reflected the true probability of the event happening, the more expensive side should be netting some "insurance premium" on average, right? Not sure, and idk how to observe if that's happening.
Polymarket is also holding onto the money in the meantime. Idk what they do with it, but it's not like some other platforms where they at least work with a bank to earn you some tiny interest on it.
They probably make interest off it themselves, so to give you any interest would cut into their margins.