Reverse 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 reverse leg is the second trade in the repo.

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

See also

• Far leg
• Opening leg
• Repo rate
• Repurchase agreement

Other resource

• ACT briefing note: Practical steps to investing in Repos