I understand that, in general, fees are charged on gross profits, not net profits. Is that also true for two contracts in a linked market?
For example, let's say there's a linked market with two options: A and B. If I buy a share of Yes A for 20c and a share of Yes B for 80c and hold until the market resolves in favor of A, am I charged a fee on my 80c of profit from A (resulting in a net loss of 8c) or does this count as a $0 profit?
Profit fees are calculated the same way in both single and multiple-contract (linked) markets. Any time you sell a share for a higher price than you paid for it, a 10% fee is charged on the difference between the buy and sell price. When you sell a share for the same or lower price than you paid for it, no fee is charged. The fee is applied to each share without regard to buy and sell prices of any other shares.
I am wondering the same. It seems they calculate the profits individually rather than net, which is a shame because it prevents efficient arbitrage. Would be nice to get some clarification on this point though...