Securities trading is offered to self-directed customers by Webull Financial LLC, a broker dealer registered with the Securities and Exchange Commission (SEC). Webull Financial LLC is a member of the Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC), The New York Stock Exchange (NYSE), NASDAQ and Cboe EDGX Exchange, Inc (CBOE EDGX).
Webull Financial, LLC is a CFTC registered Futures Commission Merchant and NFA Member. Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement and other relevant Futures Disclosures located at www.webull.com/fcm-disclosures prior to trading futures products. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).
Advisory accounts and services are provided by Webull Advisors LLC (also known as "Webull Advisors"). Webull Advisors is an Investment Advisor registered with and regulated by the SEC under the Investment Advisors Act of 1940. Registration does not imply a level of skill or training. See additional information on the Disclosures webpage. Trades in your Webull Advisors account are executed by Webull Financial LLC.
Webull Financial LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 in any cash awaiting reinvestment). An explanatory brochure is available upon request or at www.sipc.org. Webull Financial LLC’s clearing firm Apex Clearing Corp has purchased an additional insurance policy. The coverage limits provide protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities.
Options trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Losses can potentially exceed the initial required deposit. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options before trading options.
All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Diversification does not eliminate the risk of experiencing investment losses. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges are subject to Webull Financial, LLC review and approval. Leverage carries a high level of risk and is not suitable for all investors. Greater leverage creates greater losses in the event of adverse market movements.
Investors should be aware that system response, execution price, speed, liquidity, market data, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Market volatility, volume and system availability may delay account access and trade executions.
Free trading of stocks, ETFs, and options refers to $0 commissions for WebullFinancial LLC self-directed individual cash or margin brokerage accounts and IRAs that trade U.S. listed securities via mobile devices, desktopor website products. A $0.55 per contract fee applies for certain options trades.Relevant regulatory and exchange fees may apply. Please refer to our Fee Schedule for more details.
No content on the Webull Financial LLC website shall be considered as a recommendation or solicitation for the purchase or sale of securities, options, or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.
FAQs
What is Take Profit/Stop Loss Order? Take Profit/Stop Loss Order is an order type used to exit an existing position. A stop-loss order is designed to prevent further losses on the existing position once the option price reaches a specified price and is filled as a market order.
Can you set a stop-loss and take profit for options? ›
A very popular profit-taking strategy, equally applicable to option trading, is the trailing stop strategy wherein a pre-determined percentage level (say 5%) is set for a specific target. For example, assume you buy 10 option contracts at $80 (totaling $800) with $100 as profit target and $70 as a stop-loss.
How to use stop limit order on Webull? ›
A stop limit order is similar to a stop order, except that the order is changed to a limit order upon triggering. When placing a stop limit order, two prices are entered: a stop price and a limit price. The order is triggered when the stock has traded at or through the stop price and then becomes a limit order.
Does stop-loss work after hours Webull? ›
Tips: On Webull, we only support placing trailing stop orders during market hours. On Webull, a trailing stop order expires at the end of each trading day.
Is it better to take profit or stop-loss? ›
Stop-loss prevents you from losing too much of your investment in one trade. Take profit helps you to lock-in what you've already earned. They benefit you because the market is very unpredictable. At one moment everything could be going very well, and at another, it could start falling without any reason.
Can I trade without stop-loss and take profit? ›
In fact, some traders are opposed to using stop-losses at all. These traders rely on no stop-loss strategy to bring them profit. Some of them do succeed, but the majority don't. Before you decide on whether or not to use a stop-loss strategy, you should consider the advantages and disadvantages of placing stops.
What is the best time to buy options? ›
Even if the stock price remains at the same place, the value of the option can go up if volatility goes up. It is always advisable to be buying options when the volatility is likely to go up and sell options when the volatility is likely to go down.
Does option trading is gambling? ›
Unlike gambling, options trading provides the opportunity for profit through strategic decision-making and analysis of the underlying asset. While there is an element of risk involved, options trading is not solely based on chance, but rather on probability and analysis.
How long should you hold options? ›
So, how long should you hold an option trade? Well, it depends on your strategy and your risk tolerance. But if you're looking for a more conservative approach, you might want to consider holding your options for at least 100 days for long positions and 50 days for short positions.
Should I use stop order or limit order? ›
Use a stop order when you are more concerned with getting out of the trade and are not as concerned about the price. A stop-limit order typically ensures that you get the price you set, but it doesn't guarantee that your trade will go through.
A stop limit order lets you add an additional trigger to your trade, giving you more specificity over your order execution. When the options contract hits a stop price that you set, it triggers a limit order.
What is the best way to use a limit order? ›
Traders should use a buy limit order to specify the highest price they are willing to pay for a security. For example, suppose you wanted to buy 500 shares of JCP if the stock dropped to $19.50 per share. In this case you would be ready to invest $9,750 plus commissions.
How to day trade on Webull without 25k? ›
In order to day trade on WeBull without $25k, you will have to either open a cash account with WeBull, or limit the number of day trades that you make within a 5-day period. Theoretically, you could open a cash account and a margin account with Webull.
Can my broker see my stop-loss? ›
Market makers are allowed to see where stop-loss orders are placed because of the structure of financial markets and the role of market makers in facilitating trading activities.
Should day traders use stop-loss? ›
It is a great option and is a personal choice for day traders to use and avoid losses after a certain price dip. Stop-loss order strategy is often used with the swing low and high to avoid more losses as they are risky and can incur more losses than usual.
How do you use stop-loss and take profit orders? ›
When placing a Stop Loss or a Take Profit level the following parameters must be met: On a Buy Order, the Stop Loss level must be placed at a lower price than the Order price, as well as this, the Take Profit level must be placed at a higher price than the Order price.
Are stop-loss orders good or bad? ›
The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion. Finally, it's important to realize that stop-loss orders do not guarantee you'll make money in the stock market; you still have to make intelligent investment decisions.
Does take profit close the trade? ›
A 'take-profit' order – otherwise known as a 'limit closing order' – is a type of limit order where you set an exact price. Your trading provider will then use this price to close your open position for profit. If the limit order does not hit the limit price, then the order remains inactive.
Can I have a stop-loss and a take profit at the same time? ›
You can set a target price for both Take Profit and Stop Loss orders, both when you have an open position and before you open one. When the price of the instrument reaches either of these specified values, your position will be automatically closed.
