Short selling on Webull requires a margin account with at least $2,000 in equity. You cannot short sell with a cash account, if your margin equity is too low, or if the specific stock is not "shortable" (indicated by a blue arrow icon). Additionally, regulatory restrictions (SSR) or low stock availability can prevent trades.
Hard to Borrow stocks are not available to short on Webull as they can be very costly (very stock specific based on demand, but have seen 50% and higher). That is 50% of the price of stock calculated daily / 365. INSANELY expensive for most retail investors.
Yes, you can short stocks on Webull if you meet the following requirements: Margin account: Selling short can only be done in a margin account.
If you are in the US - you cannot short shares that you own. It's called ``shorting the box'' or a constructive sale. It's not permitted under US tax code because it can be a way to evade taxes by artificially closing a position to defer taxes into a different tax year.
The Short Sale Restriction is a rule imposed on Traders by the SEC, SEC Rule 201 to be exact. Their objective is to prevent short sellers from further negatively impacting the value of a stock after an initial drop of (or more). It is designed to limit traders in their ability to short the stock in question.
Learn more about margin accounts and short selling
Shorting is allowed on senior stocks over $3 per share but not on junior stocks or senior stocks under $3.
The 7% sell rule is a stock trading guideline to cut losses quickly, advising you to sell a stock if it drops 7-8% below your purchase price to protect capital, remove emotion, and prevent small losses from becoming catastrophic, a strategy popularized by William O'Neil's CAN SLIM method for growth investing. It assumes that truly strong stocks typically don't fall much below their buy point, so a dip signals something is wrong, requiring you to exit the trade to preserve funds for better opportunities.
Key Takeaways. Short selling occurs when an investor borrows a security and sells it on the open market, planning to repurchase it later for less money. Short sellers are essentially betting that a security's price will fall.
The Short Sale Rule is designed to prevent unchecked short selling from cratering the price of a stock. The rule is significant for short sellers, since it restricts short selling at the bid for up to two market sessions after a stock's price falls more than 10% from its prior close.
The Webull $25k rule refers to the SEC's Pattern Day Trader (PDT) rule, which restricts accounts with less than $25,000 in a margin account to only three day trades (buying and selling the same security in one day) within a rolling five-business-day period, while accounts with $25k or more can do unlimited day trades; Webull enforces this rule for its margin accounts but offers a one-time PDT reset and allows trading in cash accounts without these limits.
Webull Securities (Canada) Limited is admitted to membership in the Canadian Investment Regulatory Organization, effective November 15, 2023.
Hidden Fees and Regulatory Charges on Webull
Margin interest rates are charged when you borrow funds to trade on margin. Margin fees are set by the lender and vary by amount. You can view Webull's rate table here. The same is true of short-selling fees, which are charged when you trade borrowed stocks.
Which broker is best for short selling?
Webull Short Interest Overview
As of December 31, 2025, Webull (BULL) had a short interest of 19.18 million shares sold short, representing 5.88% of the public float. This marks a 60.31% increase in short interest since the prior report.
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While short selling is subject to a developed framework comprising Canadian securities legislation and Canadian Investment Regulatory Organization (CIRO) requirements, and there are rules such as prohibitions on market manipulation and trading on non-public material information that could apply to the conduct being ...
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