Short Leg

Short Leg
Any contract in an option spread in which an individual holds a short position. If a trader has created an option spread by purchasing a put option and selling a call option, the trader's short position on the call would be considered the short leg.

Option spreads are positions created by options traders by buying and selling an equal number of option contracts, with differing strikes, on the same underlying security. Option spreads are used to limit overall risk by ensuring that gains and losses are restricted to a range. Additionally, option spreads can serve to bring the costs of options positions down, since traders will collect premiums from contracts in which they short.

Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • short leg — noun : a fielding position in cricket on the leg side relatively close to the batsman; also : a player fielding in this position compare long leg; see cricket illustration * * * short leg noun (cricket) A fielder, or a fielding position, very… …   Useful english dictionary

  • short-leg|ged — «SHRT LEHG ihd, LEHGD», adjective. having short legs …   Useful english dictionary

  • short leg — noun a fielding position on the leg side, square of, and close to the batsman; a fielder in the position …   Wiktionary

  • short leg — /ʃɔt ˈlɛg/ (say shawt leg) noun Cricket 1. the on side fielding position close to and more or less square of the person batting; bat pad. 2. a fielder in this position; bat pad …  

  • short leg brace — popular term for an orthosis of the lower limb that does not have a knee component, such as an ankle foot orthosis …   Medical dictionary

  • forward short leg — noun Cricket 1. a fielding position in front of the wicket on the leg side close to the person batting. 2. a fielder in this position …  

  • leg — {{11}}leg (n.) late 13c., from a Scandinavian source akin to O.N. leggr leg, bone of the arm or leg, from P.Gmc. *lagjaz, with no certain ulterior connections, perhaps from a PIE root meaning to bend [Buck]. Cf. Ger. Bein leg, in O.H.G. bone, leg …   Etymology dictionary

  • Leg warmer — Leg warmers are coverings for the lower legs, similar to socks but thicker and generally footless. Leg warmers were originally dancewear worn by ballet and other classic dancers. Leg warmers are thought by some dancers to warm the lower calf, but …   Wikipedia

  • Leg theory — is a bowling tactic in the sport of cricket. The term leg theory is somewhat archaic and seldom used any more, but the basic tactic still plays a part in modern cricket.Simply put, leg theory involves concentrating the bowling attack at or near… …   Wikipedia

  • Short form cricket — is a collective term for several modified forms of the sport of cricket, with playing times significantly shorter than more traditional forms of the game. A typical short form cricket match can be completed within two to three hours, compared to… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”