Investments glossary


A leg is one component of a derivatives trading strategy in which a trader combines multiple options contracts, futures contracts or—in rare cases—combinations of both to hedge a position, benefit from arbitrage or profit from a spread. Within these strategies, each derivative contract or position in the underlying security is called a leg. The cash flows exchanged in a swap are also referred to as legs.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *