What does Legging In mean?
Legging is a technique used in options trading that does involve multiple transactions with several individual positions. Legging in describes the process of making each of those transactions separately.
Futures Knowledge Explains Legging In
Legging in and out strategy is used when it is likely to be more profitable to make these transactions individually. It may be possible to make additional profits by legging into, or out of, a position. It lowers risk when buying and selling commodities futures contracts.It may be prudent to leg out of a position to lock in profits or cut losses. This strategy is also used when a trader is not able to carry out all transactions simultaneously