Have you ever found yourself staring at your Webull account, seeing your investments fluctuate, and thinking, "Okay, I need to lock in these gains (or cut my losses!) – but how exactly do I close this position?" If so, you're not alone! Many new and even experienced traders sometimes need a refresher on the precise steps to exit a trade.
Closing a position on Webull is a fundamental skill, whether you're taking profits from a winning stock, minimizing losses on a downturn, or simply rebalancing your portfolio. This comprehensive guide will walk you through the process, step by step, for various types of assets you might hold on Webull.
Understanding the Basics of Closing a Position
Before we dive into the "how-to," let's quickly clarify what closing a position means. When you open a position, you either buy an asset (going "long") hoping its price will increase, or you sell short an asset (going "short") hoping its price will decrease. To close a position, you do the opposite:
To close a long position (bought shares): You sell the shares you previously bought.
To close a short position (shorted shares): You buy back the shares you previously sold short to cover your position.
The goal is to complete the transaction and realize your profit or loss.
Step 1: Let's Get Started! Accessing Your Positions on Webull
Ready to take control of your trades? The very first thing you need to do is log in to your Webull account on your mobile app or desktop platform. This is where all the magic happens!
Once you're in, navigate to your Account tab. On the mobile app, this is usually found at the bottom of the screen, often represented by the Webull logo or a house icon. On the desktop, it's typically a clear "Account" or "Portfolio" section.
Sub-heading: Confirming Your Active Account (If You Have Multiple)
If you manage multiple accounts on Webull (e.g., a cash account and a margin account), it's crucial to ensure you've selected the correct account before attempting to close any positions.
On Mobile: Look for an account selector, usually at the top or within the Account menu. Tap on it to see all your accounts and select the one holding the position you wish to close.
On Desktop: Your active account is usually displayed prominently. Double-check it!
Step 2: Locating the Specific Position You Want to Close
Now that you're in the right account, it's time to find the exact asset you want to sell.
Within the "Account" or "Portfolio" section, you'll see a "Positions" tab or section. Tap or click on this.
This area displays a comprehensive list of all the securities, ETFs, options contracts, or cryptocurrencies you currently hold.
Sub-heading: Expanding Your Position Details
Sometimes, especially with complex trades like options strategies (e.g., straddles, strangles), your position might be grouped.
Tap on the symbol group (e.g., the ticker symbol) to expand and view the individual components or "legs" of your position. For simpler stock or ETF positions, this might not be necessary.
Step 3: Initiating the "Sell to Close" or "Buy to Cover" Order
Once you've identified the position, the process of closing it begins.
Tap or click on the specific security, ETF, or option leg you wish to close.
A quick action menu or a detailed view of your position will typically appear. Look for an option like "Sell to Close" (for long positions) or "Buy to Cover" (for short positions). Select the appropriate action.
Sub-heading: Understanding "Sell to Close" vs. "Buy to Cover"
It's important to differentiate these terms:
Sell to Close: This is what you do when you own shares (you went long) and want to sell them to exit your trade and realize your profit or loss.
Buy to Cover: This is what you do when you have sold shares you don't own (you went short) and need to buy them back from the market to return them to the lender and close your short position.
Step 4: Customizing Your Closing Order
After selecting "Sell to Close" or "Buy to Cover," an order ticket will populate. This is where you specify the details of your exit strategy.
Quantity: Crucially, enter the number of shares, units, or contracts you wish to sell/buy back. You can choose to close the entire position or just a partial amount.
Order Type: This is where you define how your order will be executed. Common choices include:
Market Order: This order tells Webull to execute your trade immediately at the best available market price. It guarantees execution but not a specific price. Use with caution in volatile markets.
Limit Order: This order allows you to specify the maximum price you are willing to pay (for "Buy to Cover") or the minimum price you are willing to accept (for "Sell to Close"). Your order will only execute if the market reaches or surpasses your specified price. This is often preferred for more control.
Stop Order: A stop order becomes a market order once a specified "stop price" is reached or passed. This is often used for risk management to limit potential losses.
Stop-Limit Order: Similar to a stop order, but once the stop price is triggered, it becomes a limit order instead of a market order, giving you more price control.
Trailing Stop Order: A dynamic stop order that adjusts with the price of the security. It's designed to protect gains by moving the stop price up (for long positions) or down (for short positions) as the stock's price moves favorably.
Price: If you selected a Limit, Stop, or Stop-Limit order, you'll need to input your desired price. You can use the price adjustment arrows or tap on the price field to type in a value.
Time-in-Force (TIF): This determines how long your order will remain active.
Day: Your order is active only for the current trading day and will expire at market close if not filled.
Good-Til-Cancelled (GTC): Your order remains active until it's filled or you manually cancel it (typically up to 60 calendar days on Webull).
Other options like "Fill or Kill" (FOK) or "Immediate or Cancel" (IOC) might also be available for specific scenarios.
Step 5: Reviewing and Submitting Your Order
Once you've filled out all the necessary details on the order ticket, tap or click "Review and Send" or "Preview Order."
This step is critical. Webull will display a summary of your order, including the asset, quantity, order type, price, estimated commission (if any), and the potential impact on your account.
Carefully review all the details to ensure they are correct. An error here could lead to an unintended trade.
If everything looks right, tap or click "Submit" or "Send Order."
Sub-heading: Understanding Order Status
After submitting, your order will typically enter one of the following states:
Working/Pending: Your order has been submitted and is waiting to be filled.
Partially Filled: Part of your order has been executed, and the remaining portion is still active.
Filled: Your entire order has been executed, and your position is closed (or partially closed).
Cancelled: You or the system cancelled the order before it was filled.
Rejected: Your order could not be processed for various reasons (e.g., insufficient buying power, market conditions).
You can usually track the status of your orders in the "Orders" section of your Webull account.
Step 6: Confirmation and Post-Trade Review
Once your order is filled, you'll receive a confirmation notification.
It's a good practice to revisit your "Positions" tab to verify that the position has been successfully closed and is no longer listed (or the quantity has been updated for partial closes).
You can also check your "Order History" and "Trade Confirmations" for detailed records of the transaction. This is essential for your personal record-keeping and tax purposes.
Special Considerations for Different Asset Types
While the general steps remain consistent, there are a few nuances for specific asset classes:
Closing Options Positions
Options are more complex due to their expiration dates and various strategies.
To close a long option position (you bought the contract), you'll typically place a "Sell to Close" order for that specific option contract.
To close a short option position (you sold the contract), you'll place a "Buy to Close" order.
Be mindful of expiration dates! Webull may auto-liquidate options positions close to expiration if you don't have sufficient equity or if they become deep in-the-money. It's generally recommended to close options at least 30 minutes before market close on the expiration day to avoid auto-liquidation.
Closing Short Selling Positions
As mentioned, closing a short position always involves a "Buy to Cover" order. You're buying back the shares you borrowed and sold to return them.
Ensure you have sufficient funds in your margin account to cover the cost of buying back the shares, especially if the price has moved against you. Margin calls can occur if your account equity falls below maintenance requirements, potentially leading to forced liquidation.
Closing Cryptocurrency Positions
The process for closing crypto positions on Webull is generally similar to stocks – you'll find your crypto holdings in the "Positions" section and select "Sell" or "Close Position" for the specific cryptocurrency you wish to exit.
Keep in mind that crypto markets trade 24/7, so you can close positions outside of traditional stock market hours.
Important Tips for Closing Positions on Webull
Always Double-Check: Before submitting any order, always review the quantity, price, and order type. A misplaced decimal or incorrect selection can lead to significant unintended consequences.
Understand Order Types: Familiarize yourself with the different order types (Market, Limit, Stop, Stop-Limit) and when to use each. This knowledge is crucial for effective risk management and profit-taking.
Monitor Market Conditions: In fast-moving markets, a market order might execute at a price significantly different from what you saw moments before. Consider using limit orders for better price control.
Be Aware of Trading Hours: While some assets like crypto trade 24/7, stocks and options have specific trading hours. Orders placed outside these hours will typically be queued for the next trading session.
Account for Fees and Commissions: While Webull is known for commission-free trading on many assets, always be aware of potential regulatory fees or specific product fees (e.g., per-contract fees for some options).
Practice with Paper Trading: If you're new to closing positions or trying a new strategy, Webull offers a fantastic "Paper Trading" simulator. Use it to practice placing and closing orders without risking real money.
10 Related FAQ Questions
How to close a partial position on Webull?
To close a partial position, follow the same steps as closing a full position, but when you get to the "Quantity" field in the order ticket, simply enter the specific number of shares or contracts you wish to sell/buy back, rather than the entire holding.
How to cancel a pending order on Webull?
Go to your "Orders" tab, locate the pending order you wish to cancel, and tap/click on it. You should see an option to "Cancel Order." Confirm the cancellation.
How to set a Stop Loss order to close a position on Webull?
When placing your closing order, select "Stop" or "Stop-Limit" as the order type. You will then input your desired "Stop Price," which acts as the trigger point for your order to become active.
How to close a short position on Webull?
To close a short position, you will perform a "Buy to Cover" transaction. Navigate to your "Positions," select the shorted asset, and choose "Buy to Cover," then specify the quantity and order type.
How to close an options contract on Webull?
For long options, use a "Sell to Close" order. For short options, use a "Buy to Close" order. Access the options contract from your "Positions," select the specific leg, and proceed with the appropriate closing action.
How to avoid auto-liquidation of options on Webull?
Webull recommends closing options positions at least 30 minutes before market close on the expiration day. Ensure you have sufficient buying power if the option is in-the-money and you intend to exercise it, otherwise, close it manually.
How to confirm a position has been closed on Webull?
After submitting a closing order, check your "Orders" tab for a "Filled" status. Also, verify your "Positions" tab to confirm the asset is no longer listed or the quantity has been updated. You'll also receive a confirmation notification.
How to close a crypto position on Webull?
Navigate to your "Account" and then the "Positions" section. Locate the cryptocurrency you hold, select it, and choose the "Sell" or "Close Position" option. Enter the quantity and confirm your order.
How to choose the best order type (Market vs. Limit) for closing a position on Webull?
Use a Market Order if your priority is immediate execution regardless of minor price fluctuations. Use a Limit Order if your priority is to get a specific price and you are willing to wait for the market to reach that price. Limit orders are generally safer in volatile markets.
How to see the profit/loss of a position on Webull before closing?
On the "Positions" tab, Webull typically displays your unrealized profit/loss for each open position, often as a percentage and a dollar amount. This will help you decide when to close.
