Not Held (Algo) Orders

The Not Held (Algo) execution order type is a new feature that allows our clients to execute a large options order using an algorithmic (algo) solution. By choosing this destination, Webull will use discretion on the order to seek best execution. We utilize third party algorithms to provide these solutions, which seeks to obtain the best price and optimize execution quality. We currently offer one algo solution. This order type will actively seek price improvement in the market, before it takes out available liquidity to complete the order.

How does the algorithm work?

The current algo order logic uses a progression algorithm, which breaks the parent order into smaller distinct quantity slices. The order is worked in the market at increasing levels of aggressiveness until the order slice either fills or reaches the client specified limit price. If one of the order slices receives an execution, then the algo immediately switches to the next slice following the execution. There are multiple modes within this algorithm which include passive, moderate, aggressive, and take mode. These modes are designed with the intention of seeking liquidity and price improvement. If the order has not been fully executed after the working time has expired, the remaining portion of the order will be canceled back to the client.

Why choose a Not Held order?

An algo allows Webull clients to use a tool to help navigate the complex market structure and market dynamics to execute larger orders, which may outsize the available liquidity on the screen. The algo will actively seek price improvement and liquidity in the market. By leveraging an algo, the Not Held order will adapt to changes in the market (price and available liquidity) and actively participate in price discovery - while working to complete the order.

Important considerations for Not Held orders:

By choosing the Not Held route you are granting Webull time and price discretion over the order with the goal of seeking best execution. A Not Held order is handled through an algorithmic solution to prioritize execution quality however there is no guarantee of completion of the order.

Options are risky and not suitable for all investors. Investors can rapidly lose 100% or more of their investment trading options. Before trading options, carefully read Characteristics and Risks of Standardized Options, available at Webull.com/policy.