Unleashing Your Investments: A Comprehensive Guide to Selling Stock on Webull
Hey there, fellow investor! Are you ready to take control of your portfolio and potentially lock in some profits? Selling stocks can be just as crucial as buying them, and with Webull's powerful platform, the process is straightforward once you know the ropes. This guide will walk you through every step of selling your stock on Webull, from understanding order types to navigating settlement times and even addressing tax implications. Let's dive in and empower you to make informed decisions!
Step 1: Accessing Your Portfolio and Initiating a Sell Order
The first crucial step is to get to where your investments live – your Webull portfolio. Whether you're on the mobile app or desktop platform, the user interface is designed for intuitive navigation.
Sub-heading: Logging In and Finding Your Holdings
Mobile App: Open the Webull application on your smartphone or tablet. You'll likely need to enter your PIN, use Face ID, or fingerprint authentication to securely log in. Once logged in, look for the "My Positions" or "Total Asset" section, usually found on the main dashboard or by tapping the central Webull icon.
Desktop Platform: Head to
www.webull.com
Sub-heading: Selecting the Stock to Sell
Once you're viewing your positions:
Identify the specific stock you wish to sell. You'll see a list of all your holdings, along with their current market value, daily change, and other relevant metrics.
Tap or click on the stock you want to sell. This will take you to the detailed quote page for that particular security. On this page, you'll see charts, news, analysis, and most importantly, the trading buttons.
Look for the "Trade" button, often prominently displayed. Clicking or tapping this will bring up the order ticket.
Step 2: Understanding Order Types for Selling
This is where things get interesting! Webull offers various order types, each with a specific purpose. Choosing the right one can significantly impact your sale price and execution.
Sub-heading: Market Orders – Simplicity and Speed
A Market Order is the simplest and quickest way to sell. When you place a market order, you instruct Webull to sell your shares immediately at the best available price in the market.
Pros: Guaranteed execution (your order will almost certainly be filled). Ideal when you need to exit a position quickly.
Cons: No control over the exact selling price. In fast-moving or illiquid markets, the execution price might be significantly different from the last quoted price, leading to what's known as "slippage."
When to Use: When speed is your priority and you're comfortable with the prevailing market price, even if it fluctuates slightly.
Sub-heading: Limit Orders – Price Control is Key
A Limit Order allows you to specify the minimum price you are willing to accept for your shares. Your order will only be executed if the market price reaches your specified limit price or higher.
Pros: Guarantees your desired selling price (or better). Protects you from selling at an unexpectedly low price.
Cons: Not guaranteed to execute. If the market price never reaches your limit price, your order will not be filled.
When to Use: When you have a target price in mind and are willing to wait for it. This is especially useful for volatile stocks or during extended trading hours where liquidity might be lower.
Sub-heading: Stop Orders (Stop-Loss) – Protecting Your Capital
A Stop Order (often referred to as a Stop-Loss order when selling) becomes a market order once a specified "stop price" is reached.
Pros: Helps limit potential losses on a position. Once triggered, it aims to sell your shares quickly.
Cons: Like a market order, the actual execution price might be below your stop price, especially in rapidly falling markets. There's no guarantee of the fill price.
When to Use: To protect against significant downturns in a stock you own. For example, if a stock is trading at $100, you might set a stop-loss at $95 to limit your loss to 5%.
Sub-heading: Stop-Limit Orders – A Hybrid Approach
A Stop-Limit Order combines features of both stop and limit orders. You set a "stop price" and a "limit price." When the stock reaches your stop price, a limit order is then placed at your specified limit price.
Pros: Offers more control over the execution price than a simple stop order.
Cons: Not guaranteed to fill if the price drops rapidly past your limit price after the stop is triggered.
When to Use: When you want to limit losses but also want to avoid selling at an extremely low price if the market experiences a sudden, sharp decline.
Step 3: Entering Your Sell Order Details
Now that you understand the different order types, it's time to fill out the order ticket.
Sub-heading: Specifying Quantity and Price
Side: Ensure "Sell" is selected. This is critical to avoid accidentally buying more shares!
Order Type: Choose the order type that best suits your selling strategy (Market, Limit, Stop, Stop-Limit).
Quantity: Enter the number of shares you wish to sell. You can sell a portion of your holdings or your entire position. Webull also supports fractional shares for certain stocks, allowing you to sell a specific dollar amount.
Limit Price (if applicable): If you chose a Limit or Stop-Limit order, enter your desired selling price. Remember, for a sell limit order, this price should be at or above the current market price if you want immediate execution, or higher if you're waiting for a price increase. For a stop-limit sell, the stop price should be below the current market price, and the limit price should be at or below the stop price.
Stop Price (if applicable): If you chose a Stop or Stop-Limit order, enter the price that will trigger your order.
Sub-heading: Time-in-Force (TIF)
Day Order: This is the default. Your order will remain active only until the end of the current trading day. If it's not executed by then, it will be canceled.
Good-Til-Canceled (GTC) Order: This order will remain active for an extended period (typically 60 days on Webull, but always check their current policy) or until it's executed or manually canceled by you.
Extended Hours (if applicable): Webull allows trading during pre-market (4:00 AM - 9:30 AM ET) and after-hours (4:00 PM - 8:00 PM ET). If you wish to sell during these times, you'll need to enable "Include Extended Hours" (usually available as a toggle or dropdown option) and you can only use Limit Orders during extended hours. Be aware that liquidity is typically lower and volatility can be higher during these periods.
Step 4: Reviewing and Confirming Your Order
Before hitting that final "Sell" button, always double-check your order details.
Review the stock symbol, quantity, order type, price (if applicable), and time-in-force.
Webull will also display an Estimated Cost or Estimated Proceeds which will factor in any regulatory or exchange fees. While Webull generally offers zero-commission trading for stocks and ETFs, small regulatory fees may still apply to sell orders (e.g., FINRA TAF, SEC fee).
Carefully read any warnings or disclaimers that may appear, especially for stop or stop-limit orders.
Once you are absolutely sure all the details are correct, proceed to confirm your order. You might be asked to enter your trading password or PIN again for security.
Step 5: Monitoring Your Order and Settlement
After placing your sell order, it's not an instant cash deposit into your bank account. There are a few more steps.
Sub-heading: Checking Order Status
You can typically monitor the status of your order in the "Orders" section of your Webull app or desktop platform.
An order can be "Pending," "Partially Filled," "Filled," or "Canceled."
If your order is partially filled, it means only a portion of your desired shares have been sold, and the remaining part is still active.
Sub-heading: Understanding the Settlement Period (T+1)
When you sell a stock, the transaction doesn't immediately "settle." Settlement is the official transfer of ownership of the securities and the cash.
As of May 28, 2024, the settlement period for most U.S. stocks, ETFs, and bonds is T+1, meaning the trade settles on the transaction date plus one business day.
For example, if you sell shares on a Monday, the funds will typically settle by Tuesday (assuming no market holidays). If you sell on a Friday, they'll settle by the following Monday.
You generally cannot withdraw funds from a stock sale until they have settled. Attempting to trade with unsettled funds (known as "free riding") can lead to restrictions on your account.
Step 6: Withdrawing Your Funds (Optional)
Once your funds have settled, you can choose to keep them in your Webull account for future investments or withdraw them to your linked bank account.
Sub-heading: Initiating a Withdrawal
Navigate to the "Transfers" or "Deposit/Withdrawal" section within your Webull account.
Select "Withdrawal."
Choose the linked bank account you wish to transfer the funds to. If you haven't linked a bank account, you'll need to do so first.
Enter the amount you wish to withdraw.
Review the withdrawal details and confirm.
Sub-heading: Withdrawal Processing Times
Withdrawal processing times can vary, but typically, it takes 1-3 business days for funds to appear in your bank account after they've been initiated from Webull. International transfers may take longer.
Webull generally does not charge fees for standard ACH bank transfers for withdrawals, though your bank might have its own incoming transfer fees.
Important Considerations After Selling
Tax Implications: Selling stocks, especially at a profit, has tax implications. You'll generally owe capital gains tax on any profits.
Short-term capital gains: Apply to investments held for one year or less. These are taxed at your ordinary income tax rate.
Long-term capital gains: Apply to investments held for more than one year. These are typically taxed at lower, preferential rates.
Webull will provide you with a Form 1099-B (and potentially 1099-DIV for dividends or 1099-INT for interest) at tax time, detailing your sales, proceeds, and cost basis. It's crucial to use this document when filing your taxes.
Consult a tax professional for personalized advice, especially if you have complex trading activity.
Wash Sales: Be aware of the wash sale rule. If you sell a security at a loss and then buy a "substantially identical" security within 30 days before or after the sale, the loss may be disallowed for tax purposes.
Portfolio Rebalancing: Selling stocks can be part of a broader strategy to rebalance your portfolio, adjust your risk exposure, or capitalize on new opportunities.
10 Related FAQ Questions
How to sell fractional shares on Webull?
You can sell fractional shares on Webull through the mobile app by entering a dollar amount or a specific fractional quantity rather than whole shares when placing a sell order. Currently, fractional share trading is primarily available on the Webull app, not the desktop platform.
How to sell stocks on Webull outside of regular market hours?
To sell stocks outside of regular market hours (pre-market and after-hours) on Webull, you must place a Limit Order and select "Include Extended Hours" in the order ticket.
How to set up a stop-loss order on Webull?
To set up a stop-loss order, select "Stop" as your order type in the sell order ticket, then input your desired "Stop Price." Once the stock price reaches this level, a market order will be triggered to sell your shares.
How to cancel a pending sell order on Webull?
You can cancel a pending sell order by navigating to the "Orders" section of your Webull app or desktop platform, finding the unexecuted order, and selecting the "Cancel" option.
How to check the status of my sell order on Webull?
The status of your sell orders (e.g., Pending, Partially Filled, Filled, Canceled) can be checked in the "Orders" tab or section within your Webull account interface.
How to withdraw money from Webull after selling stocks?
Once your stock sale has settled (typically T+1), navigate to the "Transfers" or "Deposit/Withdrawal" section, choose "Withdrawal," select your linked bank account, and enter the amount you wish to transfer.
How to find my tax documents (1099-B) on Webull after selling stocks?
You can access your tax documents, including Form 1099-B, by logging into your Webull account, navigating to the "Tax Center" or "Documents" section, and then selecting the relevant tax year.
How to avoid a wash sale on Webull when selling at a loss?
To avoid a wash sale, ensure that you do not buy back the same or a "substantially identical" security within 30 days before or after selling it at a loss.
How to contact Webull customer service for issues with selling stock?
You can contact Webull customer service through their in-app chat support, email, or by checking their "Help Center & FAQ" section on their website for contact numbers or specific support channels.
How to understand the fees associated with selling stocks on Webull?
While Webull offers commission-free trading for US stocks and ETFs, minor regulatory fees (like FINRA TAF and SEC fees) are still applied to sell orders. These fees are usually displayed as part of the "Estimated Cost" or "Estimated Proceeds" before you confirm your trade.