Can you sell ETFs and stocks short on WeBull? Fees and requirements. Does WeBull offer inverse ETFs and buying put options?

Can You Short Sell on WeBull?

Are you wondering if Webull is a good broker for short sellers? Does Webull allow selling shares on margin? You’ll be happy to know that Webull does offer short selling and the broker makes it very easy to make money as stocks go down.

If you want to learn more about how to short stocks at Webull, keep reading. We’ve compiled all the most important information regarding short selling at Webull.

Is Short Selling Possible at Webull?

Short selling is an advanced trading strategy that enables investors to take advantage of falling prices. While many brokers shy away from offering short selling to investors, Webull is happy to oblige. As long as your trading account meets the minimum requirements, you can use your margin account to ‘borrow’ shares of a stock and sell them to other investors.

Here is how to short stocks at Webull.

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How to Sell Stocks Short

Assuming that all the account requirements have been met, shorting stocks on Webull is just as simple as buying stock. As long as the stock is shortable, you can use the order ticket to sell instead of buy to open a position. To close the position, you will buy to cover the shares that you sold.

Sell Shares Short

To short a stock on the browser-based platform, the desktop trading software, or the mobile app, navigate to the order ticket for whichever stock you would like to short. The first things that you will want to do is ensure that the stock that you want to short can be shorted.

When viewing the information for the stock (found directly above the chart on mobile), you will see icons related to that security. If one of the icons is a downward facing, blue arrow, the stock is shortable.

You can place a market order or a limit order when shorting stocks.

Webull shorting stocks


Buy to Cover Sold Shares

To close a short position, you will buy to cover the shares that you sold. As the price of the stock decreases, and your profits increase, you will look to close out your position by buying back the shares that you sold.

Webull shorting stocks


Webull Short Selling Fees

Webull does not charge any commissions for trades made through its platforms. Short selling does have a small fee, however.

To sell shares short, you must first borrow them. Each stock has a different profile and desirability that can change from day to day. Due to a variety of factors, a stock’s loan rate changes each day.

The fees for selling stocks short are calculated by multiplying the stock loan rate (divided by 360) and the value of the stock at market close.

Account Requirements

To sell stocks short on Webull, there are a couple of requirements. The first is that your account should be a margin account. Since selling short requires borrowed assets, the margin account requirement is unavoidable.

Another thing that you should keep in mind are the account minimums. At Webull, there aren’t any minimum balance requirements for trading accounts, but for short selling that is not the case. You will need to maintain a minimum account balance of $2,000.

Alternative Methods for a Bearish Bias

Apart from selling stocks short, there are also a few other methods that you can use to express a bearish view. You can go long an inverse ETF or create advanced options strategies that benefit from falling prices.

Inverse ETFs can be good options for investors who are wanted to get bearish on an entire sector or basket of related stocks. There are also inverse ETFs that track the prices of the main equity markets (S&P 500, Nasdaq, and Dow).

Some popular Inverse ETFs are:

ProShares Short S&P 500 (SH)
ProShares Short QQQ (PSQ)
ProShares Short Russell2000 (RWM)
ProShares Short Dow30 (DOG)

Options strategies are best for investors who want to set up a bearish strategy on a specific security. Some of the most popular are covered calls, put options, and vertical spreads.

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