Common Questions About Futures

Does Webull offer futures trading?

Yes, Webull provides futures trading to eligible users.

How can I contact Webull Futures support?
You can contact the Webull Futures team by phone at 888-816-0040 or by email at futures@webull.com.

Support Hours:

• Monday–Friday: 8:00 AM – 5:00 PM ET

How do I open a futures account?

To be eligible for a futures account with Webull, the following requirements must be met:

• You must be a resident of the United States.
• You must have an existing individual Webull brokerage account to apply for and maintain a futures account.
• You cannot apply for or maintain a futures account using only a separate joint brokerage account.

If you are located outside of the U.S., the option to apply for a futures account will not appear in the app or on the website.

To open a futures account, please follow the instructions below for the Webull mobile app, website, or desktop app:

App:

1. Tap the Menu logo.
2. Select Settings.
3. Tap Account Management.
4. Scroll down and select Apply for new accounts.
5. Choose Futures and follow the application prompts.

Desktop:

1. Click the drop-down menu in the top right (where your account number is displayed).
2. Select Futures.
3. You will be redirected to the website — on the My Account page, scroll down and select Futures.
4. Follow the prompts to open a futures account.

Web:

1. Click on your avatar/photo in the top right and select My Account.
2. Click Explore more Accounts.
3. Scroll down and select Futures.
4. Click the hyperlink Open Futures Account and follow the application prompts.

How can I fund my Webull Futures account?

You can fund your Webull Futures account using any of the following methods:

• Internal Transfer: Transfer cash from your brokerage account to your Futures account through the Transfer Money section in the Webull mobile app or on the website.
• ACH: Deposit funds directly into your Futures account via ACH using the Transfer Money section in the Webull mobile app or on the website. ACH deposits settle in two business days and do not provide Instant Buying Power.
• Wire: Deposit funds into your Futures account by submitting a wire through the Transfer Money section in the Webull mobile app or on the website. Wire instructions will be provided after selecting the Futures account as the destination.

When wiring funds directly to your Futures account, include your Webull Futures account number in the memo section of the wire transfer.

How can I withdraw funds from my futures account?

• Internal Transfer: Once funds are settled, you may transfer cash from your Futures account to your brokerage account through the Transfer Money section in the Webull mobile app or on the website. Funds from closed futures positions become available for transfer on the next business day after the position is closed.
• ACH: You may withdraw funds from your Futures account to your linked bank account via ACH using the Transfer Money section in the Webull mobile app or on the website. ACH withdrawals follow the same processing timelines as standard brokerage ACH withdrawals.
• Wire: You may withdraw funds directly from your Futures account to your bank by submitting a wire request through the Transfer Money section in the Webull mobile app or on the website. Wire fees and processing procedures are the same as those for standard brokerage accounts. Be sure to submit the request from the correct Futures account.

The amount available to withdraw may vary depending on your recent activity and deposit method. For more information on withdrawability, please click here.

What is the minimum equity requirement to trade futures?

The minimum equity required to trade futures is $100. Once your account is activated, you are not required to maintain a $100 balance. Your account will remain active even if the balance falls below this amount.

How can I access futures trading on Webull?

To access futures trading, you need to be a Webull user and ensure that you have been approved for futures trading within the app.

What types of futures are available on Webull?

Webull provides futures contracts for indices, interest rates, currencies, agriculture, metals, energies, and cryptocurrencies.

What is Initial margin requirement?

To open a futures position, you only need a fraction of the contract’s total value. The initial margin requirement is the amount of money you must deposit with your broker when you open a futures position; It is usually 3%-12% of the futures contract.

What is included in a futures contract?

A futures contract includes the underlying asset, delivery location, delivery date, and quantity of the asset. When it is a physical commodity, the acceptable quality of the asset is often listed.

What is the maintenance margin?

Maintenance margin is the minimum amount an investor must hold in the account at all times. The maintenance margin is less than the initial margin requirement. The maintenance margin varies based on the positions held in the account.

Intraday, initial, and maintenance margin requirements are detailed within each contract. For a full list of margin requirements across all supported futures products, please visit: Futures Margin Rates

What happens if my account goes below the minimum margin requirement?

You will be asked to provide sufficient funds to bring the account back up to the initial margin requirement or your position will be liquidated.

What is open trade equity?

Open trade equity is the net of unrealized gain or loss on currently open futures positions. To put it simply, it is the paper gain or loss represented by the current market value and price paid; also known as unrealized P and L. For example, if an investor buys 1 contract of ES expiring December of 23 at 4100 and the current settle price is 4200, you will have an unrealized P and L of 100 (4200-4100) multiplied by the multiplier (100*50 = 5000) minus fees and commission.

What is Mark-to-Market?

Mark to market is very similar to open trade equity. It is the process of reevaluating the profit or loss that has occurred due to changes in price at the end of each trading day.

What is buying power?

Buying power is the money you have available to purchase securities. It is NOT your cash balance. Buying power = cash + Margin Requirements - open orders.

What is a realized profit and loss?

A realized profit or loss is the profit or loss that occurs when a futures contract is sold for a different price after it was bought.

For example, if you bought 1 contract of ES for $4100 and sold it for $4200, in the equity world, your realized profit would be $100. However, in futures trading, you must multiply your profit by the contract multiplier, which is specific to the type of contract you buy (in this case, it is $50). So your realized profit would be $100*50=$5000.

What are the types of orders?

Available order types include market orders, limit orders, stop limit orders, and stop market orders.

What are the trading hours for futures?

The market for futures is open virtually 24 hrs. a day and 6 days a week. However, each product has its own specific hours of trading.

What is a futures contract?

A futures contract is a legal agreement between a buyer and a seller to either buy or sell a commodity, like crude oil, or a financial instrument like E-mini-S&P 500, at a pre-established price and date in the future.

What is a contract’s tick size?

A “tick size” refers to a price movement by which a specific contract can change. Tick values differ depending on the type of contract. As an example, the tick size for the E-mini-S&P 500 is .25 per point. Because E-mini 500s represent 50 times the S&P 500 Index, every 0.25 move in E-mini S&P 500 is equivalent to $12.50.

How do you calculate the futures contract multiplier?

The contract multiplier varies with the type of contract that is trading, but to calculate the multiplier, you can divide the tick value by the tick size (tick value/tick size).

What is a futures margin requirement?

A futures margin requirement is a deposit of an amount of money that must be posted in an account to control a futures contract. They are not down payments like stock margins. They are required to ensure that traders can meet financial responsibilities.

What is a trade confirmation?

A trade confirmation is basically a receipt of an executed order sent to you by your broker. Trade confirmations are sent to show that the transaction has taken place. You will receive a trade confirmation after every trade made. Trade confirmations can help with filing your taxes.

What is a futures statement?

A futures statement is a list, with an indicated date, of all futures and futures options transactions made. The statement provides profit and loss information.

What is the first notice day?

The first notice day is the first day on which a buyer of a futures contract may be notified that they must take physical delivery of the contract’s underlying commodity. Depending on the futures contract being traded, you may have to take action and close your position on or before the first notice day to avoid physical delivery. Failure to do so may result in Webull closing the position on your behalf.

What is the last trading day?

The last trading day is the final day that the futures contract may be traded before the delivery of the contract’s underlying commodity must occur. Depending on the futures contract being traded, you may have to take action and close your position on or before the last trading day to avoid physical delivery. Failure to do so may result in Webull closing the position on your behalf.

What is an intraday margin?

An intraday margin is the amount of margin needed to open and close a position within the same trading day, which is typically lower than overnight or initial margin. Intraday margin is only available between 9:30am EST and 4:00pm EST. Intraday margin increases leverage which can increase risk and may not be suitable for all investors.

What is open interest and what does it mean in the futures market?

Open interest is the entire number of open contracts on a commodity. Basically, it is the number of futures contracts that have yet to be settled or closed by delivery or offsetting. It is used as an indicator to discover market sentiment and the power behind price trends. It can also be used to verify trends and trend reversals for futures contracts.

What does it mean when the futures market is in contango?

When the futures market is in contango it means that futures contracts are trading higher than the spot price. Spot price is lower than future prices, meaning the forward curve for said product would have an upward slope.

What does it mean when the futures market is in backwardation?

When the futures market is in backwardation it means that the spot price is higher than the future price which causes the forward curve for said product to have a downward slope.

What is a spot price?

A spot price is the cash price for immediate delivery.

What are contract trading codes?

Contract codes are often one to three letter codes identifying the asset that is attached to a specific contract. For example, E-mini S&P 500 futures’ contract code is ES. Make note that these codes could vary across platforms. Following the contract code should be a letter and a number, for example, ESG8. The G represents a month (February) and the 8 represents a year (2018). Each month has its own letter. So, as in the example listed above, ESG8 would represent an E-mini S&P 500 futures contract expiring in February of 2018.

How are futures contracts quoted?

Futures contracts are quoted using the "treasury pricing" quotation method, commonly used for financial instruments like U.S. Treasury bonds and notes. In this format, the quote includes the contract's expiration month and year, followed by the contract's price as a percentage of its face value.

For example, a futures contract for a U.S. Treasury bond expiring in September 2023 and priced at 98.50 would be quoted as "Sep 2023 98.50."

What is the difference between physical and cash settled?

A physical settlement means there is a physical delivery of the commodity. Cash settlement means the commodity isn’t physically delivered, only the difference in price is being paid out and there will be a debit or credit to your account. Physical delivery is not permitted at Webull, and policies are in place to ensure physical delivery is not incurred (see q. 21 & q. 22).

What is a contract roll?

Rolling a position means closing a position in the current contract month and opening a new position in a further traded contract month.

What is volume?

Volume is calculated by counting the number of futures contracts bought or sold at a specific time. It is used to measure the liquidity of certain contracts.

How do futures differ from options?

The holder of a Futures contract has an obligation to execute the contract at the specified price and date. Option contract holders have the right but not the obligation to exercise the contract. Futures and options are both derivative contracts.

How are futures traded?

Futures are traded through exchanges such as the Chicago Mercantile Exchange (CME) or the New York Mercantile Exchange (NYMEX). Customers can place orders through Webull.

What is the difference between speculators and hedgers in futures markets?

Hedgers use futures to protect themselves from adverse price fluctuations; for example, a soybean farmer that wants to lock in a price for their crop. A speculator’s goal is to profit from price movements, without any intention of owning the underlying commodity.

How are futures priced?

The price of a futures contract typically mirrors the current price of the underlying commodity, adjusted for storage costs and other factors. The price is determined by the supply and demand in the market.

What is “expiration” in futures trading?

Expiration is the date the contract expires. If a position is not closed by expiration, then the contract holder is required to either accept or provide the physical delivery of the underlying commodity. Most traders close their position before expiration to avoid taking physical delivery.

Can you change the terms of a futures contract after it’s initiated?

No, the terms of a futures contract are set by the exchange and are not customizable.

How is leverage used in futures trading?

Leverage in futures is the ability to control a large position with only a fraction of the cost. Leverage can multiply profits, but it can also increase potential losses.

Can I trade futures without physical delivery?

Yes. The majority of traders do not take physical delivery. They offset their positions before expiration by entering an opposite trade, canceling out their obligation. Physical delivery is not permitted at Webull.

What should I know about using an OCO (One-Cancels-the-Other) order?

With an OCO order, both parts of the order are live in the marketplace at the same time. In some cases, due to market volatility, it is possible that both the stop and limit order can be executed. Cancellations are performed on a best-efforts basis and the use of advanced orders, such as OCO orders, comes with the acceptance of the risks involved.

It is possible that both orders may execute, which might result in your account being left with an undesired position.