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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Leg  

Definition 1.

1. Term describing an order entry technique used by brokers. A leg occurs when a broker executes contingent orders in separate phases, thus increasing the risk for price swings through time delays. 2. A description of different aspects in a combination option.
 

Definition 2.

A prolonged trend in stock market prices, such as a multiple-period bull market; or, an option that is one side of a spread transaction. See: Lifting a leg.
 

Definition 3.

One side of an option spread. A leg may be long or short.
 
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