Reverse leg

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Repurchase agreements

A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.

The second trade reverses the initial sale and purchase, but at a later date and different price.


The reverse leg is the second trade in the repo.

It is also known as the closing, off, far, or second leg.


See also


ACT briefing note: Practical steps to investing in Repos