Opening leg

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 opening leg is the first trade in the repo.

It is also known as the starting, first, near, or onside leg.

See also

• Closing leg
• Near leg
• Repo rate
• Repurchase agreement

ACT briefing note: Practical steps to investing in Repos