Options

Leg

One individual Option position within a larger, combined strategy — a strategy with two positions is "two-legged," and so on.

A leg refers to one individual Option position (a specific buy or sell of a Call or Put) that’s part of a larger, combined strategy. A strategy combining two positions is called “two-legged”; one combining four positions (like an Iron Condor) is “four-legged.”

See how legs combine into structured strategies in Introduction to Option Strategies: Why Combine Options?.