GEX which is commonly called as gamma exposure is a measure mentioned in dollar denomination that indicates about the obligations that the option market makers would have. It is said to be one of the very much important parts of things to be followed while trading. It will be something like the activity that will involve the process of finding the edge in the specific market that can help anybody to trade very much constantly and become reliable. Do checkout Zigz which is one of the right places where the market will most probably be reliable and can be trusted as well.
Now let’s come to what this indicator in any option market is all about and what it really means. They are as follows,
- Whenever the value of this GEX in the market is in higher numbers, then it will be meant like the volatility of the option market is and is going to be lower soon. When the GEX in the market is in lower numbers, then it will be meant like the volatility of the option market is and is going to be higher soon.
- It is also said that the higher prices of gex in the market will act as a brake in the price of the market and will act as an accelerator in the price of the market. Visit Zigz to know more about all these and other things about the same option market as well. When the volatility is higher and on the same side, the GEX would be lower which means that the loss in these places are very much difficult to happen where at the same time we will be expecting a slower market when this thing happens. The value of this GEX will also be negative which is nothing to panic.