A leg is one piece of a multi-part trade, often a derivative trading strategy. Within these strategies, each derivative contract or position in the underlying security is called a leg.There are many benefits to trading legs. For one, it allows traders to hedge their positions and benefit from arbitrage opportunities. Additionally, legs can be used to profit from spread widening or tightening.However, there are also some challenges associated with trading legs. First of all, it can be difficult to keep track of multiple contracts and positions simultaneously. Additionally, Legs tend to be more complex than other types of trades and as such require careful planning and execution in order to be successful.
