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What's the difference between margin and cash account?
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What's the difference between margin and cash account?

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 TypeNet account valueDay TradeMargin tradeShort selling
Cash accountUnlimitedN/ANoNo
Margin account$0-20003 day trades in 5 business daysNoNo
Margin account$2,000-25,0003 day trades in 5 business daysDay trade: up to 4 times
Overnight:up to 2 times
Yes
Margin account≥$25,000unlimitedYes

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Related Issues
How can I change to a cash account or a margin account?
How can I find my account type?