As for the OP question: please explain a bit more clearly what you want. Assessing the sign of gamma of an exotic option? Are you interested in cutting-edge numerical stuff for high-speed evaluation? Are you interested in the basics of how gamma is computed? Or are you just interested in learning the global behaviour of gamma of various exotic options?As for the management of a exotics book, I think you need to differentiate between managing an overall book which will have gamma changing with time and level of undelrying and the management of specific cases in such a book where gamma get's very large due to - for example - an option approaching a barrier. For the overall management, I think most common is running scenarios where you bump underlyings/vols/time to some levels to see how your greeks look in that case. Based on this + how happy a trader with his position given his opinion on the market, a trader might decide to change his exposure by hedging with options. In the markets I work in, you see almost only vanillas trading OTC (so hedging happens with those). In theory, static hedging is nice there, in practice however, on a book with a lot of different undelryings and a lot of different exotics, my experience is just hedging with vanillas on roughly the right levels (which you know because you know what the big positions in your book are). For example, suppose I sell some autocallables, that contain a down-in-put at maturity, I'll probably just sell some puts against this (it gets a little more sophisticated as just selling some puts, but definitely not as sophisticated as looking at an optimal static hedge).As for the management of a being close to a barrier or digital level (this is typically where your gamma blows up): hold your breath, cross your fingers and pray is not the worst of strategies. Alternatively, depending on size, there are some games that are being played in the market of course (sst). Also, you could assign a probability to a barrier being hit, and having a look at how much you gain or lose when you are 1% below versus 1% above the barrier. Based upon those, you could decide to do some delta hedging against such a barrier? to FrenchX: I obviously cannot explain what causes - what is according to you - daveangel's bad mood. However, after your first post in this thread, I almost published the same kind of reply as he did but I hit the delete button at the last moment as I thought it wasn't worth it and it was just me who was annoyed. However, it seems not so let me explain. Personally, I get annoyed because:1. your first replies contain a lot of links and other noise (like your thoughts on the subject) which might be tangential and to some extent related to the OPs question, but don't answer his question.2. your replies show that you probably understand a lot of the theoretical foundation of derivative pricing, but demonstrate a clear lack of understanding of the basics from a practical point of view (your comment "remember that a portfolio of vanillas also can have a negative gamma" shows very clearly that your thinking way to theoretical about this and lack any practical experience).3. Because of the above + the contents of your numerous posts I get the impression that your participation on this forum has to do with a careermove that you want to make sooner or later. That's just as good as a lot of other reasons to participate in a forum to me, but please keep yourself confined to subjects where you actually can add some real value.