What is Dealer gamma (GEX)?

Dealer gamma, or gamma exposure (GEX), measures how options market-makers must hedge as price moves. In positive gamma, dealers sell rallies and buy dips, pinning price and suppressing volatility. In negative gamma, dealers chase the move, amplifying it.

How to read it

Positive GEX = range-bound, mean-reverting tape. Negative GEX = trending, violent tape where moves accelerate. Knowing the regime tells you whether to fade or follow.

FAQ

Does dealer gamma work in crypto?

Yes — as crypto options markets (Deribit and others) have grown, dealer hedging shapes spot volatility regimes much like in equities.

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