Leg

A term used when referring to the execution of positions with more than one component. For example, when trading a straddle, both the call and put must be bought or sold. In this case, the trade has “two legs,” which may be executed simultaneously or at two different points in time. If a trader misses one “leg” of the trade (i.e. due to an adverse price change), the trader is said to be “legged.”

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