I Want You
To subscribe to our newsletter

* Required
Please enter a valid email address.
Please enter your first name.
Please check this box if you want to subscribe.
Thank you for subscribing to The Financial Pipeline! You will be receiving an email shortly to confirm your subscription.
Sorry, there was a problem with registration. Please try again.


Gamma (or convexity) is the degree of curvature in the financial contract’s price curve with respect to its underlying price. It is the rate of change of the delta with respect to changes in the underlying price. Positive gamma is favourable. Negative gamma is damaging in a sufficiently volatile market. The price of having positive gamma (or owning gamma) is time decay. Only instruments with time value have gamma.