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Positive gamma, negative gamma and zero gamma explained
Gamma exposure (GEX) – estimated market-maker hedging
Quick definition: Gamma here is an estimate of how much of the underlying market makers would need to buy or sell as price moves to stay hedged.
DeepDom derives it from BTC and ETH options open interest on Deribit (expiries ≤ 45 days), under a common assumption: market makers are long the calls clients sell and short the puts clients buy, so call gamma is added and put gamma subtracted. Actual market-maker positions are not public; if the assumption is wrong, the gamma sign is wrong too.
Positive gamma: in theory, market makers sell into rises and buy into dips, so their hedging runs against price.
Negative gamma: in theory, market makers buy into rises and sell into dips, so their hedging runs with price.
Zero gamma: the nearest price (within ±15%) where estimated total gamma flips sign. Usually gamma is positive above it and negative below. If no flip is found, the Gamma box shows "Positive / Negative gamma across the range".
On DeepDom the Gamma box shows where price sits versus zero gamma, the call wall and the put wall, plus options size versus futures. It describes data; it is not a verified signal.
Suppose the BTC Gamma box shows: price 108,500, zero gamma 106,000, call wall 110,000, put wall 100,000. Price sits above the estimated flip level (positive gamma under the assumption above) and about 1.4% below the call wall. This describes the data; it is not a forecast.
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Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.