Trading Fractional Bonds

What is fractional bond investing?

Fractional bond investing allows individuals to purchase a portion of a bond, rather than buying the entire bond, which can often be expensive. This makes bond investing more accessible by lowering the minimum amount of money needed to participate. For example, someone could buy $200 worth of a bond instead of being required to purchase the whole bond at a par value of $1,000.

How do I trade fractional bonds?

Trading fractional bonds on Webull is as simple as submitting a regular order. Look out for the fractional bond icon next to the CUSIP to see if the bond is fractional eligible.

Which bonds are fractional bonds available for?

U.S. Treasuries that meet certain eligibility requirements are enabled for fractional trading. In the future, the eligible universe is expected to expand to include a subset of U.S. corporate bonds as well.

How do I know which bonds are eligible for fractional trading?

Bonds eligible for fractional trading will have a green icon next to the CUSIP.

What is the minimum price to buy or sell a fractional bond?

The minimum value for a fractional bond order to buy or sell is $100 face value (0.1). Once the minimum is met, increments of $1 are permitted (e.g., $101).

How do I sell my fractional bond?

To sell your fractional bond, go to the positions section of your account page and tap or right-click the position to view trade options. You can enter your order by either dollar amount (USD) or face value; tap or click the relevant field to switch between input methods.

It's important to note that:

• Orders to sell part of a fractional bond position that would bring it below the $100 face value minimum will be rejected (e.g., selling $450 of a $500 fractional bond position).
• Selling smaller quantities (odd lots), such as a single bond, may take longer to execute compared to larger, round-lot orders (e.g., 10 bonds).

To learn more about the risks and rules of fractional bond trading, click here.

Are there additional risks associated with owning a fractional portion?

Yes. While fractional bonds carry the same underlying risk as a whole bond for the same CUSIP, there are additional risks to holding a fractional portion. Please see our fractional bond disclosure for more information.