General Margin Questions

What is margin trading?

Margin trading allows you to borrow funds from your broker to purchase additional securities, giving you increased buying power. While this leverage can enhance potential returns, it also increases the risk of amplified losses.

How do I trade on margin?

To trade on margin or short sell, you must open a margin account and maintain at least $2,000 in Net Account Value (NAV) by 4:00 PM ET. Pending ACH deposits and option position value do not count toward this requirement because they are non-marginable securities. If you reach this requirement intraday through a wire, debit card deposit, or internal transfer, margin leverage will become active on your account during the following business day’s premarket session.

How much leverage does Webull offer?

Once your account meets the $2,000 NAV requirement, you can access up to 4 times leverage for day trading and 2 times leverage for holding positions overnight. Some securities may have higher margin requirements or may not be eligible for margin at all. Always check a stock’s leverage eligibility before placing a trade.

How do I know which stocks I can leverage?

If the dollar icon appears on the stock's quote page, it means the stock is marginable. To check the maximum leverage available for that stock, simply tap the dollar icon.

What should I monitor in my margin account?

Monitoring the following figures helps you understand your available buying power, risk level, and how close you are to a potential margin call:

• Margin equity: Margin equity is your net account value minus the value of non-marginable securities. It represents the portion of your account that supports your margin positions.
• Maintenance requirements: Maintenance requirements are the minimum amount of margin equity you must maintain to continue holding your margin positions. If your margin equity falls below this level, a margin call will be issued. For example, a stock position worth $8,000 with a 25% maintenance requirement would require $2,000.
• Margin excess: Margin excess is the amount by which your margin equity exceeds the maintenance requirement. It reflects how much equity is available in your account before a margin call could occur.

Margin equity = Net account value – Options value

Margin excess = Margin equity – Maintenance requirement.

What is buying power?

Buying power is the total amount of funds available to purchase securities, including any accessible margin. In a margin account, buying power consists of Overnight Buying Power (ONBP) and Day Trade Buying Power (DTBP). ONBP is the amount you can use to open positions that may be held overnight, while DTBP is the amount available for positions that will be closed within the same business day. Buying power updates after each trade and resets at the start of every business day. You can find more information on margin buying power here.