FAQs  >  Topic: Trading

What is Dime Buyback?

Dime buyback is a feature offered by OptionsHouse that waives the commission charge and contract fee when you buy to close an option for 10 cents or less. Dime buyback will automatically start working each time you buy to close an option for 10 cents or less.

For example, if you buy back a single option at 10 cents or less, the trade will be commission-free. If you placed a two-leg spread where one leg was a buyback for 10 cents or less, the commission would be calculated like the other leg was a single option.

A few more facts:

  • Dime buyback works on all order types.
  • If the first fill of a qualifying trade is filled at 10 cents or less, the feature will automatically start working.
  • If your first execution is partially filled at 10 cents and the balance is filled at 15 cents, your entire trade would qualify.
  • Dime buyback is based on the first execution of each trade.

OptionsHouse is committed to offering our customers the best tools and value in the industry. Closing short options is a risk management discipline that successful traders employ regularly, so we’ve made it easy for you to do that with the Dime Buyback program.  

For a more detailed discussion of how a professional trader views risk and reward please read The Dime Buyback program and How Professionals Manage their Portfolios, a blog from our Chief Investment Strategist, Steve Claussen.