Ready to take control of your trades on Webull? Whether you're a seasoned pro or just starting out, knowing how to effectively use stop-loss and take-profit orders is absolutely crucial for managing risk and securing gains. This comprehensive guide will walk you through every step, helping you navigate the Webull platform with confidence.
The Power Duo: Stop Loss and Take Profit
Before we dive into the "how-to," let's briefly understand why these orders are so vital.
Stop-Loss Orders: Think of a stop-loss as your safety net. It's an order placed with your broker to sell a security when it reaches a certain price, known as the "stop price." This is designed to limit your potential loss on a position. If the market moves against you, your stop-loss order will trigger, helping to prevent catastrophic losses.
Take-Profit Orders: This is your goal-setter. A take-profit order (often a limit order) instructs your broker to sell a security once it reaches a predetermined price, allowing you to lock in your gains. It ensures you don't get greedy and miss out on profits if the market reverses.
Together, they form a powerful risk management strategy, helping you automate your trading decisions and remove emotion from the equation.
Step 1: Log In and Select Your Asset
Alright, let's get started!
Are you logged into your Webull account? If not, head over to the Webull website or open your mobile app and log in. You'll need your credentials ready.
Once logged in, you'll see your dashboard. Now, navigate to the asset you wish to trade. This could be a stock, ETF, or even an option. You can usually find it by searching for its ticker symbol in the search bar or by selecting it from your watchlist or portfolio.
Step 2: Initiate a Trade Order
With your chosen asset in view, it's time to prepare your trade.
Sub-heading: Finding the Trade Button
On the asset's detail page, look for the "Trade" button. This is typically prominent and might be labeled "Buy" or "Sell" depending on whether you already hold the asset or are looking to open a new position. Click on it.
Sub-heading: Choosing Your Action (Buy/Sell)
You'll be presented with the order entry screen. Here, you'll need to decide if you are:
Buying: If you're opening a long position, anticipating the price will go up.
Selling: If you're opening a short position, anticipating the price will go down, or if you're closing an existing long position.
Select the appropriate action.
Step 3: Select the Order Type (Limit + Take Profit/Stop Loss)
This is where the magic happens! Webull offers a specific order type that allows you to set both stop-loss and take-profit simultaneously.
Sub-heading: Locating Advanced Order Types
On the order entry screen, you'll see a dropdown or option for "Order Type." The default is usually "Limit" or "Market."
Click on this dropdown menu. You're looking for an advanced order type, often called "Limit + Take Profit/Stop Loss" or something similar. Webull is known for combining these into a single, efficient order type.
Sub-heading: Understanding the Combined Order
When you select "Limit + Take Profit/Stop Loss," you're essentially placing a primary order (usually a Limit order to buy or sell at a specific price) and attaching two sub-orders to it:
One for your Take Profit (a limit order to sell if the price goes up, or buy to cover if you're short and the price goes down).
One for your Stop Loss (a stop order to sell if the price goes down, or buy to cover if you're short and the price goes up).
It's crucial to understand that these sub-orders only become active once your primary order is filled. If one sub-order is executed, the other is automatically canceled (this is known as an "One Cancels the Other" or OCO feature within this combined order).
Step 4: Define Your Entry Price (Primary Order)
Now, let's specify the terms of your initial trade.
Sub-heading: Setting Your Limit Price
For your primary order (e.g., a "Buy Limit" or "Sell Limit"), enter the specific price at which you want your initial trade to be executed.
For a buy limit order, you set a price at or below the current market price.
For a sell limit order, you set a price at or above the current market price.
Choose a price that aligns with your entry strategy.
Sub-heading: Specifying Quantity
Enter the number of shares or contracts you wish to buy or sell for this trade.
Step 5: Set Your Take Profit Parameters
Time to define your target!
Sub-heading: Entering the Take Profit Limit Price
In the "Take Profit" section of the combined order, you'll typically enter a Limit Price. This is the specific price at which you want to sell your shares to lock in your profit.
If you're long (bought shares), your take profit limit price will be above your entry price.
If you're short (sold shares you borrowed), your take profit limit price will be below your entry price (as you'd buy back at a lower price to profit).
Carefully consider your profit target based on your analysis.
Step 6: Set Your Stop Loss Parameters
This is your risk control mechanism.
Sub-heading: Entering the Stop Price
In the "Stop Loss" section, you'll enter the Stop Price. This is the trigger price.
If you're long, your stop price will be below your entry price. If the market price falls to this level, your stop-loss order will be triggered.
If you're short, your stop price will be above your entry price. If the market price rises to this level, your stop-loss order will be triggered.
Sub-heading: Understanding the Stop-Limit Option (Optional but Recommended)
Webull often provides the option to make your stop-loss a "Stop Limit" order. While a simple "Stop" order will convert to a market order once triggered (meaning it will fill at the next available price, which could be significantly different in fast-moving markets), a "Stop Limit" order adds an extra layer of control.
If you choose "Stop Limit," you'll enter both a Stop Price (the trigger) and a Limit Price (the maximum/minimum price at which you're willing to execute the trade after the trigger).
For a long position, your stop limit price should be at or slightly below your stop price to ensure you don't get filled too far away from your intended exit.
For a short position, your stop limit price should be at or slightly above your stop price.
Using a stop-limit can help prevent slippage, but be aware that your order might not fill if the price moves too quickly past your limit. For beginners, a simple stop order might be easier to manage, but understanding stop limits is crucial for advanced risk management.
Step 7: Choose Time-in-Force (TIF)
This setting dictates how long your order remains active.
Sub-heading: Common Time-in-Force Options
You'll typically have two main options on Webull for combined orders:
Day: The order will only be valid for the current trading day. If it's not filled by market close, it will be automatically canceled.
Good-Til-Cancelled (GTC): The order will remain active until it's filled or you manually cancel it. This can be useful for longer-term strategies.
Choose the TIF that aligns with your trading timeframe. For most active traders, "Day" is common, but GTC can be valuable for swing trades or investments.
Step 8: Review and Confirm Your Order
Before you hit that final button, take a moment to thoroughly review all the parameters you've set:
Asset
Action (Buy/Sell)
Quantity
Primary Order Price (Limit)
Take Profit Limit Price
Stop Loss Price (and Stop Limit Price, if applicable)
Time-in-Force
Double-check everything! A misplaced decimal or incorrect price can have significant consequences.
Sub-heading: Understanding the Order Confirmation
Webull will usually provide a summary of your order, showing the potential profit/loss scenarios based on your settings.
Once you are absolutely sure all details are correct, click the "Place Order" or "Confirm" button.
Step 9: Monitor Your Order
After placing your order, it's important to keep an eye on it.
Sub-heading: Accessing Your Orders
You can typically find your pending and filled orders in the "Orders" section of your Webull platform (often found in the bottom navigation bar on mobile or a dedicated section on the desktop version).
Here, you can see the status of your primary order and the attached stop-loss and take-profit orders.
Sub-heading: Modifying or Cancelling Orders
If market conditions change, or your strategy evolves, you can usually modify or cancel your pending orders directly from the "Orders" section. Be mindful that if your primary order has already been filled, you'll be modifying the active stop-loss and take-profit orders.
Congratulations! You've successfully set up stop loss and take profit orders on Webull. This fundamental skill will significantly enhance your ability to manage risk and protect your capital.
10 Related FAQ Questions
How to calculate a reasonable stop loss?
A common method is to use a percentage of your trading capital (e.g., 1-2% risk per trade), or base it on technical analysis levels like support/resistance, moving averages, or average true range (ATR).
How to determine an effective take profit level?
This often involves technical analysis (e.g., resistance levels, previous highs, Fibonacci extensions), risk-reward ratios (aiming for at least a 1:2 or 1:3 reward-to-risk), or fundamental analysis targets.
How to adjust stop loss and take profit on an open position?
On Webull, navigate to your "Positions" or "Orders" tab, find the active trade, and look for options to "Modify" or "Adjust" the attached stop loss and take profit orders.
How to use a trailing stop loss on Webull?
Webull supports trailing stop orders. Instead of a fixed price, a trailing stop moves with the market price, maintaining a specified distance (either a percentage or a fixed amount) from the current price. If the price reverses by that amount, the order triggers.
How to avoid slippage with stop loss orders?
Slippage occurs when your stop order fills at a price worse than your stop price. Using a stop-limit order can help by setting a limit price for execution, but this also carries the risk of the order not filling if the market moves too fast past your limit. Trading during less volatile hours can also help.
How to set stop loss and take profit for options on Webull?
The process is very similar to stocks. When placing an options trade, you will also find the "Limit + Take Profit/Stop Loss" order type in the order entry screen and can set your desired trigger and limit prices for the options contract.
How to understand if my stop loss or take profit was triggered?
Webull will send notifications (if enabled) and you can check your "Orders" or "Trade History" section to see the execution status and price of your triggered orders.
How to manage multiple stop loss and take profit orders?
For multiple open positions, you'll set stop loss and take profit orders for each position individually. Webull's "Orders" tab provides a centralized view to manage all your active orders.
How to practice setting stop loss and take profit without real money?
Webull offers a fantastic Paper Trading feature. This allows you to practice all order types, including stop-loss and take-profit, with virtual money in a simulated market environment, without any financial risk.
How to learn more about advanced order types on Webull?
Webull's "Help Center" or "FAQ" section within their platform or on their website is an excellent resource for detailed explanations of all order types and their functionalities. They also often provide tutorials and educational content.
