# What Is the Difference between "Long Gamma" and "Short Gamma" Positions? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## What Is the Difference between “Long Gamma” and “Short Gamma” Positions?

A long Gamma position means the portfolio's Gamma is positive, typically achieved by buying options. The Delta becomes more positive when the underlying price rises and more negative when it falls, benefiting from high volatility.

A short Gamma position means the portfolio's Gamma is negative, typically achieved by selling options. The trader profits from low volatility and time decay (Theta).

- [What Is the “Strike Price” and Its Significance in Options Trading?](https://learn.greeks.live/path/what-is-the-strike-price-and-its-significance-in-options-trading/)

- [What Is the Role of the ‘Strike Price’ in an Options Contract?](https://learn.greeks.live/path/what-is-the-role-of-the-strike-price-in-an-options-contract/)

- [What Is the Significance of the “Strike Price” in an Options Contract?](https://learn.greeks.live/path/what-is-the-significance-of-the-strike-price-in-an-options-contract/)

- [Does High Volatility Also Increase the Premium of the Sold Call Option?](https://learn.greeks.live/path/does-high-volatility-also-increase-the-premium-of-the-sold-call-option/)

- [How Does Time Decay (Theta) Affect the Profitability of the Overall Collar?](https://learn.greeks.live/path/how-does-time-decay-theta-affect-the-profitability-of-the-overall-collar/)

- [Explain the Concept of ‘Strike Price’ in an Option Contract](https://learn.greeks.live/path/explain-the-concept-of-strike-price-in-an-option-contract/)

- [Which Option Position Benefits from High Theta?](https://learn.greeks.live/path/which-option-position-benefits-from-high-theta/)

- [What Is the Strike Price in an Options Contract?](https://learn.greeks.live/path/what-is-the-strike-price-in-an-options-contract/)

## Glossar

### [Long Gamma Position](https://learn.greeks.live/area/long-gamma-position/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Mechanism ⎊ A long gamma position in cryptocurrency options denotes a strategy profiting from substantial price movements, either upward or downward, while being sensitive to changes in implied volatility.

### [Gamma](https://learn.greeks.live/area/gamma/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Parameter ⎊ Representing the second derivative of an option's price with respect to the underlying asset price, this Greek measures the rate of change of Delta, indicating how quickly the hedge ratio needs to be adjusted.

### [Short Gamma Position](https://learn.greeks.live/area/short-gamma-position/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Exposure ⎊ A short gamma position in cryptocurrency options denotes a portfolio construction where an options dealer or trader has a negative gamma risk profile, typically achieved by selling options or creating a short straddle or strangle.

## Discover More

### [What Is the Difference between Triangular Arbitrage and Statistical Arbitrage?](https://learn.greeks.live/path/what-is-the-difference-between-triangular-arbitrage-and-statistical-arbitrage/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Triangular Arbitrage and Statistical Arbitrage?](https://learn.greeks.live/wp-content/uploads/2025/10/Triangular-Geometric-Intersections-Modeling-Hedged-Portfolio-Volatility-Surface-Skew.webp)

Triangular is deterministic, exploiting three-currency price inconsistencies; Statistical uses models to exploit temporary deviations between related assets.

### [What Is the Difference between Partial and Full Liquidation in Crypto Derivatives?](https://learn.greeks.live/path/what-is-the-difference-between-partial-and-full-liquidation-in-crypto-derivatives/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Partial and Full Liquidation in Crypto Derivatives?](https://learn.greeks.live/wp-content/uploads/2025/10/Crossed-Glass-Substrate-Precision-Aligning-on-Industrial-Hardware-Indicating-Derivatives-Pricing-Mechanism.webp)

Partial liquidation closes only enough of the position to meet margin; full liquidation closes the entire position.

### [What Is the Difference between the 'Pay-Per-Share' (PPS) and 'Proportional' (PROP) Reward Systems in Mining Pools?](https://learn.greeks.live/path/what-is-the-difference-between-the-pay-per-share-pps-and-proportional-prop-reward-systems-in-mining-pools/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between the 'Pay-Per-Share' (PPS) and 'Proportional' (PROP) Reward Systems in Mining Pools?](https://learn.greeks.live/wp-content/uploads/2025/10/Liquidity-Pool-Dynamics-Visualization-Contrasting-Dark-Pool-Aggregation-with-Decentralized-Exchange-Spreads.webp)

PPS pays a fixed rate per share, transferring variance risk to the pool, while PROP pays a proportion of the actual block reward, keeping variance with the miner.

### [What Is the Difference between 'Jailing' and 'Slashing' in PoS Protocols?](https://learn.greeks.live/path/what-is-the-difference-between-jailing-and-slashing-in-pos-protocols/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between 'Jailing' and 'Slashing' in PoS Protocols?](https://learn.greeks.live/wp-content/uploads/2025/10/Illuminated-Glass-Orb-Mechanism-Indicating-Stochastic-Volatility-Surface-Contango-Futures-Hedging.webp)

Jailing is temporary removal for minor faults; slashing is permanent financial penalty for malicious acts.

### [What Is the Difference between Fully Diluted Market Cap and Circulating Market Cap?](https://learn.greeks.live/path/what-is-the-difference-between-fully-diluted-market-cap-and-circulating-market-cap/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Fully Diluted Market Cap and Circulating Market Cap?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Illustration-of-Quantum-Resistant-Cryptographic-Primitives-Interacting-with-a-Spherical-Volatility-Surface-Representation.webp)

Circulating cap is current tradable supply value; FDMC is the value of the entire maximum supply.

### [What Is the Difference between a Push and a Pull Oracle System?](https://learn.greeks.live/path/what-is-the-difference-between-a-push-and-a-pull-oracle-system/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between a Push and a Pull Oracle System?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Examination-of-Black-Ceramic-Ball-Bearing-Integrated-into-Decentralized-Finance-Ledger-Substrate-Structure.webp)

Push: Oracle actively sends data on-chain upon a condition. Pull: Smart contract or user requests data when needed.

### [What Is the Primary Difference between TWAP and VWAP (Volume-Weighted Average Price) in Trade Execution?](https://learn.greeks.live/path/what-is-the-primary-difference-between-twap-and-vwap-volume-weighted-average-price-in-trade-execution/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Difference between TWAP and VWAP (Volume-Weighted Average Price) in Trade Execution?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Execution-in-Decentralized-Finance-Mechanism-Modeling-Through-Time-Locked-Derivatives.webp)

TWAP splits orders by time; VWAP splits orders by trading volume.

### [What Is the Risk of Being Long Gamma and Long Theta?](https://learn.greeks.live/path/what-is-the-risk-of-being-long-gamma-and-long-theta/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Risk of Being Long Gamma and Long Theta?](https://learn.greeks.live/wp-content/uploads/2025/10/Secured-Kinetic-Energy-Transfer-Mechanism-Governing-Decentralized-Exchange-Liquidity-Pool-Volatility-Index.webp)

It is impossible with a single option; in complex trades, the risk is often a negative Vega offsetting the positive Theta.

### [What Is the Primary Difference between a European Option and an American Option?](https://learn.greeks.live/path/what-is-the-primary-difference-between-a-european-option-and-an-american-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Difference between a European Option and an American Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Translucent-Acrylic-Convergence-Securing-Bifurcated-Digital-Asset-Hedging-Instruments.webp)

European options can only be exercised at expiration, while American options can be exercised any time up to expiration.

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