Gamma and Spot: A Conceptual Link

Why dealers hedge and how pin risk appears near strikes.

4 Lessons8m total

Gamma measures how delta changes as spot moves. Dealers hedging option books may buy or sell underlying as price moves, affecting short-term liquidity.

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Course Overview

Why dealers hedge and how pin risk appears near strikes.

What You'll Learn

✓Core concepts explained with market context

✓Practical examples tied to real instruments

✓Risk-aware framing — educational only

✓Next-step links across the VegaDeck curriculum

Gamma measures how delta changes as spot moves. Dealers hedging option books may buy or sell underlying as price moves, affecting short-term liquidity.

Expiry weeks can concentrate open interest at strikes, sometimes increasing pinning behaviour — context varies by asset.

Retail spot traders benefit from knowing these flows exist; they rarely control them.

Educational only · not investment advice · Risk disclosures

Curriculum

3 Lessons · 24m

1Vega: Volatility Sensitivity (Options Primer)Why the VegaDeck brand borrows a Greek letter.8m▢

2Futures Roll and ContangoWhy holding futures differs from spot through time.8m▢

3Gamma and Spot: A Conceptual LinkWhy dealers hedge and how pin risk appears near strikes.8mContinue Learning

Course Resources

↗BabyPipsbabypips.com ↗Forex Factoryforexfactory.com ↗CoinDeskcoindesk.com

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Educational only · not investment advice · Risk disclosures