How to read dealer gamma (GEX) in crypto

To read dealer gamma, identify the regime: positive GEX means dealers buy dips and sell rallies, pinning price (fade extremes); negative GEX means dealers chase the move, amplifying it (follow momentum). The regime tells you whether to mean-revert or trend-follow.

Positive gamma

Range-bound, mean-reverting tape — fade the extremes.

Negative gamma

Trending, violent tape — moves accelerate, so follow not fade.

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FAQ

Where does crypto dealer gamma come from?

Options market-makers (mainly on Deribit) hedging their books in spot and perps.

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