Question on how Kalshi handles illiquidity
Let’s say there’s a market at 50/50 at the start and there’s 100k participants split right down the middle. Let’s say later on that the “Yes” market hits 75% and “No” hits 25%. At this point, everyone on the “No” side decides to sell. Does Kalshi work based on a supply and demand algorithm so this would send the “No” side to basically 0% and you can’t sell at 25% unless you’re amongst the first to do so? Meaning you need actual buyers to sell to or are there market makers in between to cover these gaps?
Posted Mar 5, 2026, 7:52 PM UTC
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