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 |
|---|---|---|---|---|
| Cash account | Unlimited | N/A | No | No |
| 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 | Yes |
| Margin account | ≥$25,000 | unlimited | Yes |