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What Is the Risk of “Legging Out” a Complex Options Trade on a CLOB?

Legging out is the risk of adverse price movement between sequential executions of a multi-leg trade on a CLOB.
Greeks.Live14.11.25

What Is the Risk of “Legging Out” a Complex Options Trade on a CLOB?

"Legging out" refers to the risk of a complex, multi-leg options strategy failing to execute all its individual components (legs) at the desired prices when traded sequentially on a CLOB. If the market moves between the execution of the first and subsequent legs, the final net price of the strategy can be significantly worse, or the trader may be left with an unwanted, exposed position.

RFQ eliminates this risk by requiring a single, holistic quote for the entire strategy.

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