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Definition of 'Legging In'
1. Setting up the entry position of a complex financial investment separately from setting up the exit or unwinding of the position.
2. When a debtor or creditor enters into a hedging contract after the debt instrument has been issued or acquired in order to lower financial risk.
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Investopedia explains 'Legging In'
Legging in is a common practice used to lower risk when buying and selling commodities futures contracts. Any gain or loss as a result of the legging-in hedging strategy is deferred until the qualified instrument matures, at which time it is either disposed of or otherwise terminated.
Legging in can also refer to a slow paced investment strategy characterized by numerous continued buy/sell orders rather than entering/exiting into a position in bulk amounts.
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Search results for 'Legging In'
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http://www.investopedia.com/articles/optioninvestor/08/calendar-spread-options-strategy.asp
... If the trader still has a neutral forecast, he or she can choose to sell another
option against the long position, legging into another spread. ...
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http://www.investopedia.com/university/optionspreadstrategies/optionspreads7.asp
... Spread trades, as a rule, should be established using a spread order, leaving
legging into the spread (placing one leg at a time) to the pros. ...
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http://www.investopedia.com/articles/optioninvestor/09/iron-condors-wing-to-profit.asp
... "Legging in" refers to creating the put spread and the call spread at times that
when market makers are inflating the prices of either the sold call or put. ...
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