Multi-Leg Options Order is a form of order allowing the trader of an option to buy and sell quite a different number of options at the same time. Such trading could only be done previously by placing different individual orders. Multi-legs option order is used in different multi-legged strategies like butterfly, straddle, ratio spread and strangle.
Multi legs option order provides an option trader the elasticity for the usage of different types of options strategies at a much advanced level. This can be done by the placement of single order and payment of only one commission.
To exemplify, a single multi-leg order can be utilized for purchasing a single call option carrying a strike price of $350 along with buying a put option holding a strike price of $350. This is also called as the straddle strategy. Historically, one could adopt this strategy only by placing individual and separate orders for each of the call and put option.
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