A leap is a type of financial derivative that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price on or before a certain date. Leaps are similar to options, but they have a much longer lifespan, typically expiring in two or more years. This makes them a good choice for investors who are looking to make a long-term bet on the price of an asset.
Leaps can be used for a variety of purposes, including hedging against risk, speculating on the price of an asset, or generating income. They can be a complex investment, so it is important to understand the risks involved before you buy them. However, they can also be a powerful tool for investors who are looking to achieve their financial goals.