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Derivatives

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  • July 22, 2022
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Leg Out

An action that entails the closing out of one leg or part of a spread or generally a derivative position such as strips, straps, straddles and strangles. For example, an investor may unwind one part of a straddle which has two legs consisted of two options. Legging out can effectively prevent any potential losses or gains from the closed-out leg.

Leg out is the opposite of leg in.


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