Cash accounts allow you to day trade with settled funds. For example, if you have $1,000 settled in a cash account, you can only use up to the amount of $1,000 for day trades, no matter how many times they are. The settlement for cash accounts is 2 business days.
Margin accounts allow you to borrow money against the value of the securities in your account. For example, if you have $2,500 in a margin account, you could use additional margin funds of up to $7,500 supplied by Webull, to purchase $10,000 worth of stock. It provides a great opportunity to leverage your investment to help increase your return. At the same time, it has the risks of magnifying your losses.
|Account Type||Net account value||Day Trade||Margin trade||Short selling|
|Margin account||$0-2000||3 day trades in 5 business days||No||No|
|Margin account||$2,000-25,000||3 day trades in 5 business days||Day trade: up to 4 times|
Overnight：up to 2 times