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Webull Order Types: Take Profit, Stop Loss Advanced Orders


Webull order types - market, limit, stop, stop-limit, advanced, bracket orders - differences explained for 2022.



Webull Order Types Explained


Like most other online brokerages on the market today, Webull offers different order types to help you make trades for your securities. Today we’ll be taking a look at what Webull offers with a breakdown of each just in case you need a refresher.

Webull allows their users to place orders from this list of order types:

- Limit Order
- Market Order
- Stop Order (Stop-Loss Order)
- Stop-Limit Order

You can select which type of order you want to place at the top of the stock’s order page. This is the standard list that appears, but there is also an advanced section which we’ll discuss in a moment.


Webull Order Types


Limit Order


The first order type to talk about is the limit order, this is the default order that is selected when you first enter the stocks trading page on Webull.

A limit order is placed when a trader wants to buy or sell a security at a predefined price, or a superior one.

Assume our stock is priced at $10.

If you place a buy limit order, then you are guaranteed to buy the security at that set price or lower. For instance, if you wish to buy a stock at $15 a share and set the limit order it will only be completed if the price is at $15 per share or lower.

The same goes for the sell limit order but in reverse. A sell limit order will only be completed if the price of the security reaches the predetermined amount or higher. Taking our example from before, if you set a sell limit order at $15 per share then the security will only be sold if it reaches $15 or more.

It is important to note that while the price of the security is guaranteed, it is not assured that the orders will be completed. The security must reach the price or the order will not go through.


Market Order


A market order is different from a limit order in that there is no predefined price that the security must meet to be completed.

All a market order will do is request that the securities in question are going to be bought or sold at the best possible price in the market, as quickly as possible.

This does mean that the price of the order is subject to a bit of change if the security is more volatile. But a margin order is considered the fastest way to buy or sell a stock, and large-cap stock trades are usually completed within seconds.


Stop Order (Stop-Loss Order)


A stop order will begin to be placed when a predetermined price is met, but instead of guaranteeing that price like a limit order, it places a market order instead.

Assume our stock is priced at $10.

Keeping with our example, if you set a buy stop order at $15 per share and the market rises to that mark your order will be activated and a market order will be placed on that security. Meaning it will be purchased as close to $15 as possible depending on volume.

The same goes for a sell stop order, except in reverse. If your sell stop order is placed at $8 per share and the market then drops to that amount your order will be activated and a market order will be placed. This time the security will be sold at as close to $8 as is possible depending on the volume.


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Stop-Limit Order


The final order type in the basic category is called the stop-limit order. This order type has two separate predefined prices: the stop price, and the limit price. It will be activated at the stop price and cut off at the limit price.

Again, assume the price of our stock is currently $10.

For a buy stop order let’s assume that the stop price is set at $15 per share and the limit price is set to $20 per share. If the market rises $15 per share then the order will be triggered and the security will be bought at a price not to exceed $20 per share.

A sell stop order can be set the same way, assume the stop price is set at $8 per share and the limit price set at $6 per share. The order will be activated when the price drops to $8 but cease selling if the price drops below $6 per share.


Webull Bracket Orders (Advanced)


In the so-called “Advanced Orders” screen, you can place stop-loss/take-profit orders, also known as bracket orders. These are kind of a combo between buy and sell stop limit orders.

These are best explained in the form of an example because of the amount of moving bits that they have.

So let us one more time assume that our stock is priced at $10.


Webull Bracket Order


Say you want to purchase this stock at $9, and sell this stock if the price gets to $20 to make a profit. But you also wish to sell if the stock drops to $5 to stop further loss.

You can submit a buy limit order at $9 and then the bracket orders for a sell limit order at $20 and sell stop order at $5.


Webull Bracket Orders


If the price of the stock hits that $9 the buy limit will be triggered and the security will not be sold unless the price reaches the $20 take profit threshold or the $5 stop-loss threshold.


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About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.