US Short Selling - Webull Australia

US SHORT SELLING

Enjoy low commission and zero borrowing fees for US Stocks and ETFs short sale.

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Short selling is a high-risk strategy that can lead to potentially unlimited losses. Please review the Terms of Business and Risk Disclosure carefully before you apply.

What can I Short Sell on Webull?

US Stocks

US ETFs

Short selling is permitted only with US securities per our Accepted US Securities List.

What is Short Selling?

Short selling is a trading strategy that speculates on the decline in a security’s price.

Short selling occurs when an investor borrows a security and sells it on the open market with plans to buy it back later at a lower cost.

Short selling is used for hedging the risk of a long position or making a profit from downward price movement.

How to Apply

Short selling is only available to clients with an approved margin limit. You should read our Terms of Business for Standard Margin Facility and Short Selling before you apply.

You can apply for a margin limit, by selecting Activate from our App via Menu > Settings > Manage Brokerage Account.

Zero Borrowing Fees

Experience low-cost short selling on Webull. When you short-sell, the usual costs involve borrowing fees, commissions and relevant regulatory fees. However, Webull does not impose any stock borrowing fees.

Please be aware the rate may change based on market conditions.

The Risks of Short Selling

Potentially Unlimited Loss

The maximum loss of an investor who has bought a stock is their initial outlay if that stock moves to zero. On the contrary, a short seller can lose more than their initial investment. Given that there is no ceiling theoretically as to how much the price of a stock may rise, this means that the loss could be unlimited when it comes to closing a position.

Margin Call

All clients are responsible for maintaining the required maintenance amount at all times to avoid a margin call and/or forced liquidation.

Stock Borrowing Costs

All clients must account for the interest charged on the borrowed stocks until they are returned. The daily short interest rate can fluctuate substantially as a result of high short interest, limited float or any other reasons which could not be pre-determined. Webull currently does not charge any stock borrowing fee.

Recall and Liquidation

Borrowed stocks can be recalled by the stock lender at any time. In the event of a recall, the broker would attempt to re-borrow the stock. However, if the borrowing attempt fails, the broker will close the short position at the current market price and this could lead to an unexpected loss to the customer

Short Squeeze

A short squeeze happens when a stock rises sharply suddenly and the short seller scrambles to purchase shares to cover the positions. A demand surge for the share can drive the price higher and causing even more short sellers to exit their positions by buying back the shares.

Corporate Action

The short seller is responsible for the dividend distribution and other events associated with the shorted stock, such as share splits, bonus shares issues etc, to the stock lender. Certain corporate actions may also cause the increase in short interest rate. All this will attribute to higher short selling cost.

Delisting and Suspension

When a stock is suspended or undergoing a delisting process, the securities lending fee will still be charged on the short position until the stock is covered back when the stock resumes trading or becomes delisted. This process can continue for a long period of time and the securities lending fee, which is computed based on the last traded price or delisting price, may be costly.

Short selling is a high-risk strategy that can lead to potentially unlimited losses. Please review the Terms of Business and Risk Disclosure carefully before you apply.

What is short selling?

Short selling is when investors sell stocks they do not own. Short sellers believe the price of the stock will fall or are seeking to hedge against potential price volatility in securities that they own. If the price of the stock drops, short sellers buy the stock at a lower price and make a profit. If the price of the stock rises, short sellers will incur a loss.

Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.

How do I short sell?

What can I short sell?

What is the cost associated with Short Selling?

What is the specific impact of corporate actions during short selling?

TAKE YOUR TRADING TO THE NEXT LEVEL

Unlock your portfolio’s potential with Webull's Margin Lending and Short Selling. Enhance your buying power and diversify your strategies today.

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Short selling is a high-risk strategy that can lead to potentially unlimited losses. Please review the Terms of Business and Risk Disclosure carefully before you apply.