The price where dealers' net gamma exposure flips from positive to negative. Above it they tend to calm moves, below it they tend to amplify them. It is the single most important level on the positioning map.
Some sources also spell the Arabic term with a different letter. The meaning is the same.
What this point is
The Gamma Flip (Gamma Flip) is the price level where market makers' net gamma turns from positive to negative, or the other way round. Above it their hedging usually dampens moves (they sell into rallies and buy dips). Below it, hedging amplifies moves (they sell into drops and buy into rallies).
Why it changes the character of a session
The same level splits the market into two different regimes: above the flip, sessions tend to contract around levels and bounce off the edges; below it, moves tend to extend and slide · declines trigger selling by hedgers, which feeds on itself. That is why the same strategies behave differently depending on where price sits relative to the flip.
How it is calculated
We add up the gamma of every open contract on the symbol across strikes and expirations, assuming market makers hold the other side, then find the price where the net reaches zero. The point moves daily as positioning changes and contracts expire. It is not a fixed line.
Hypothetical example
An index trades at 5,000 and its Gamma Flip sits at 4,950. While price stays above it, bounces from the edges are common. A break of 4,950 puts the market in a negative gamma regime, where drops speed up and the daily range widens. The event is the change of regime, not the price break alone.
Common mistake
Treating the flip as an automatic entry trigger. It describes the environment, not a recommendation: it tells you what kind of session to expect and how opposing hedging behaves · the decision after that is yours, within your plan.
Where to see it on the platform
The Gamma dashboard shows the Gamma Flip for each covered symbol, with the call and put walls. The indicator bar at the top of the pages summarizes the market's current gamma regime (dampening or amplifying) through the session.
