Webull Short Selling Fees

Webull Shorting Fees, Requirements, & Short Locates. How to Short Sell Stocks on Webull in 2022

Can You Sell Short at Webull?

Did you know that you can actually make money when stocks go down? Yes, this is possible using a technique called shorting.

Webull is one broker who lets its clients short stocks. Keep reading. We’ll show you how to get started.

How Shorting Works

If you think a particular stock is headed for a downturn, instead of buying it, you can sell it. You can sell it even if you don’t own it. When you take a short position on a stock, what technically happens is that you borrow the shares from someone else at your brokerage firm who already owns them. You then immediately sell them on the open market, and this creates a short position in your account.

Eventually, you’ll need to go back into the market and buy those shares and return them to the account you borrowed them from. This is known as buying to cover.

First, Sell Short

But first, you need to submit your sell short order. To do this at Webull, you’ll want to open either the broker’s mobile app or its computer platform. The latter software comes in browser and desktop versions. They are the same, so pick whichever one you want to use if you’re trading on a desktop or laptop.

On the computer platform, the order ticket is located in multiple locations. You can access it by clicking on the “Trade” icon in the vertical left-hand menu. It will also be found at the very bottom (initially hidden) of the far right-hand column within the “Stocks” menu.

Webull Sell Short

Finally, Webull offers simulated trading (on both its mobile app and computer platform). The demo system has a similar trading ticket, although it’s not exactly the same as the live version.

The regular trading ticket offers market, limit, stop, and stop limit for sell orders. When creating a short position, you’ll click on the red sell button just as if you were selling a stock you already owned. For the order type, you’ll want to select market or limit. The stop choices are only for regular sell orders or buy-to-cover orders.

On the mobile app, the trade ticket is found on a stock’s profile page. Just tap on “Trade” and you’ll be presented with the order form.

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Second, Buy to Cover

When you’re ready to exit your short position, it’s time to buy to cover. This will be the second and final trade. Hopefully, the stock price is lower than when you sold short. That’s how the trade makes money.

To submit your order, you’ll go back to the trade ticket. This time, you’ll select buy. You’ll want to use a limit order here to lock in a profit; although you can use a market buy order if you wish.

Webull Buy To cover

If you choose a limit order, you can submit the order right away, and it will fill when the limit price is breached. This should be lower than the price you sold at.

You could also use a stop order to limit losses. If the stock price climbs too high, a buy order will trigger at the stop price, which is placed above the stock price.

Webull Shorting Costs

Webull charges zero commissions. Shorting, however, can incur interest charges. After all, you did borrow something without paying for it, didn’t you? Financial institutions do charge for this, and Webull is no exception. The loan rate varies by stock and even by day.

Buying Put Options

Besides shorting a stock, it’s also possible to make money from a drop in a stock’s price by purchasing put options on the stock. At Webull, this is possible in a cash account.

Margin Requirements

If you have chosen Webull as your broker to short equities, you’ve made a good choice. This is because the broker’s software displays margin requirements on stock profiles. Just click on the stock you’re interested in, or enter its ticker symbol or company name, and you’ll get the profile.

At the top, there will be a blue icon with a down arrow. Hover over this, and it will show you the margin requirements for shorting it along with the interest rate. If the icon doesn’t exist, it’s because the security isn’t shortable.

Some stocks are hard to borrow because there aren’t enough shares to go around. If a stock isn’t available, call Webull at (888) 828-0618 to see if they can locate shares for you.

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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.