Short Selling

What is short selling?
Short selling is a trading strategy where investors sell stocks they do not own, with the expectation that the stock price will decline. If the price drops, short sellers can buy the stock at a lower price and make a profit. If the price rises, they incur a loss. Short selling is used for various purposes, including profiting from anticipated price declines, providing liquidity, or hedging against potential price volatility in long positions.

Can I short stocks on Webull?
Yes, you can short stocks on Webull if you meet the following requirements:

1. Margin account: Selling short can only be done in a margin account.
2. Minimum margin equity: Your margin equity must be at least $2,000. This excludes options and pending deposits. If your account meets this requirement, you will be eligible to start margin trading the following day.
3. Shortable stock: The stock must be available for short selling, which is indicated by a blue downward arrow icon on the stock detail page. If the arrow is not present, the security is not available for short sales.

How do I sell short?

After checking the requirements above,

1. Ensure the stock is shortable on Webull (locate the blue downward arrow icon).
2. Place an order to sell.
3. Once executed, your short position will be displayed under the My Positions section on the Assets page, marked by a negative quantity.

What fees apply when selling short?

Fees and interest may apply when initiating a short sale. For more information, please visit interest and short selling fees.

It says the stock is Hard-To-Borrow. What is that?

To learn more about hard to borrow securities, please visit Hard-To-Borrow (HTB) securities and reg SHO.