Gamma exposure, often abbreviated as GEX, measures the total sensitivity of an options market maker's delta to changes in the underlying asset's price — effectively quantifying how much hedging activity is required as the market moves. Positive gamma exposure means market makers are net long gamma and must buy the underlying as it falls and sell as it rises — a stabilising force on prices. Negative gamma exposure means market makers are net short gamma and must sell as prices fall and buy as prices rise — an amplifying force that can increase volatility. In Indian equity markets, tracking aggregate gamma exposure in Nifty 50 options helps institutional traders anticipate potential price acceleration zones. Gamma exposure is highest near at-the-money strikes and peaks around major expiry dates — particularly monthly Nifty expiries.
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