| Back Fee |
 The premium charged upon the second term or portion of a compound option.
|

In other words, the back fee is the fee paid by the owner of a compound option to the owner of the underlying option when the compound option is exercised.
|

Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. |
|
Related Terms
 |
|