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Leg
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(1) One of several components of a combination option. (2) A phrase used by traders to describe a procedure in which one of two offsetting positions is taken in the hope that a subsequent change in the price of the other position will permit execution of the entire trade on favorable terms. When this procedure does not work, the trader 'gets legged.' If a trader 'lifts a leg,' he closes one of the offsetting positions in the hope of an unhedged profit on the other. See also Lifting a Leg.
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