What is Leg in Options Trading

1. Leg is described as an entry technique put in place by the brokers for execution of orders. While executing orders, if the broker executes it in different phases, time delays heighten the risk for a price swings causing a Leg.

2. Varied aspects associated with a combination option are often described as Leg

When an option straddle order is executed in two different phases as two individual transactions, a Leg occurs. Profit or loss follows the fluctuations in the option price. This can also be called a leg plant at times. Straddle is said to have a put leg and another call leg.

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October 4, 2008 · Filed Under Options Trading Strategies

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