Drag

A term referring to the underperformance typically observed in financial instruments that attempt to replicate the returns of other products. Drag, or underperformance, typically appears over time due to re-balancing, which causes a lag between the financial instrument and the underlying it seeks to replicate. Click here to learn more.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.