Meanings
The phrase from Scotland originally meant to make a fool of someone, often by cheating him. One theory is that it is derived from tripping someone by yanking or pulling his leg in order to make him stumble and look foolish.[1]
How to pronounce "pull someone's leg":
AU
To tease someone; to lead someone on; to goad someone into overreacting. It usually implies teasing or goading by jokingly lying.
To extract money from someone (by taking out a loan or by swindling).