It's exciting that you're delving into the world of trading on Webull! Knowing how to properly exit your positions, whether for profit or to cut losses, is just as crucial as knowing how to enter them. Let's break down the process of "sell to close" on Webull, step by step, to ensure you're confident in managing your trades.
Mastering "Sell to Close" on Webull: Your Comprehensive Guide
Have you ever found yourself in a trade, watching the price move, and then thought, "Okay, this is it! I need to lock in my gains" or "Uh oh, this isn't going as planned, time to get out!"? That's where the "sell to close" function comes in. It's the action of selling an asset you already own to exit your position. This is distinct from "sell to open," which is used to initiate a short position (betting on a price decrease).
This guide will walk you through the process of selling to close various types of positions on Webull, from simple stocks to more complex options contracts.
Step 1: Identify the Position You Want to Close
This is where your journey begins! Before you can close anything, you need to know what you want to close. Are you looking at a stock that just hit your target price? An options contract that's about to expire? Or perhaps a short position that's moving against you?
For Stocks/ETFs:
Open your Webull app or desktop platform.
Navigate to your "Account" tab (usually found at the bottom of the mobile app or top/side on desktop).
Under the "Positions" tab, you'll see a list of all the securities and ETFs you currently own.
Visually scan this list to locate the specific stock or ETF you wish to sell.
For Options Contracts:
Options are a bit more nuanced. You'll still go to your "Account" tab.
Look for your options positions, which might be grouped separately or under a dedicated options section within your positions.
Carefully identify the exact options contract you want to close, paying attention to the underlying asset, strike price, expiration date, and whether it's a call or a put.
For Short Positions (Stocks):
If you've previously "sold to open" a stock (meaning you borrowed shares and sold them, hoping to buy them back cheaper), you'll need to "buy to close" that position. While the action is "buy," the intent is to close your short.
These positions will also be listed under your "Positions" tab. They will typically have a negative quantity or be clearly marked as short.
Step 2: Initiate the "Sell to Close" Order
Once you've pinpointed the position, it's time to take action.
Locate the "Sell to Close" Option:
For Stocks/ETFs: Tap or click on the specific stock/ETF from your "Positions" list. This will take you to the detail page for that security. You should see a clear button or option labeled "Sell" or "Sell to Close."
For Options Contracts: Similar to stocks, tapping on the options contract from your positions will bring up its details. Look for the "Sell" or "Sell to Close" button. Be absolutely certain you're selecting "Sell to Close" and not "Sell to Open" if you already own the contract.
Step 3: Configure Your Order Details
This is a critical step where you define how you want your trade to be executed. Don't rush this!
Quantity:
Enter the number of shares or contracts you wish to sell. If you want to close your entire position, enter the full quantity you hold. If you only want to take partial profits or cut partial losses, enter a smaller amount.
Pro Tip: For options, remember that one contract typically represents 100 shares of the underlying stock.
Order Type:
This is arguably the most important decision here, as it dictates how your order will be executed. Webull offers several order types, and choosing the right one depends on your trading strategy and urgency.
Market Order (Most Common for Quick Exits):
Action: This order type tells Webull to execute your trade immediately at the best available current market price.
When to use: When speed is your top priority and you need to get out of a position right now, regardless of minor price fluctuations. This is often used to cut losses quickly or lock in profits before a sudden reversal.
Caution: You might not get the exact price you see on your screen due to market volatility. There's no price guarantee.
Limit Order (For Price Control):
Action: This order type allows you to specify a minimum price you're willing to sell at (for a sell order). Your order will only be filled if the market price reaches or exceeds your specified limit price.
When to use: When you want to ensure you get a specific price for your sale. This is excellent for taking profits at a predetermined level or for selling into strength.
Caution: Your order might not get filled if the market doesn't reach your specified price.
Stop Order (For Risk Management - Stop Loss):
Action: A stop order becomes a market order once a specified "stop price" is reached or breached. For a "sell to close" stop order, you're setting a price below the current market price. If the market price falls to or below your stop price, your order converts to a market order and will be executed at the next available price.
When to use: Primarily for limiting potential losses. If you own a stock at $100 and set a stop price at $95, your order will trigger if the stock drops to $95, helping you exit before further decline.
Caution: Once triggered, it becomes a market order, so you're not guaranteed to get your exact stop price, especially in fast-moving markets. There can be "slippage."
Stop Limit Order (For Risk Management with Price Control):
Action: This is a combination of a stop order and a limit order. When your specified "stop price" is reached, instead of becoming a market order, it becomes a limit order at your specified "limit price."
When to use: When you want to limit losses but also want some control over the execution price. You'd set a stop price to trigger the order and a limit price to ensure it doesn't sell below a certain point.
Caution: There's a risk that your stop price is hit, but your limit price isn't, leaving you with an unfilled order and still holding the position.
Take Profit Order (For Automating Gains):
Action: This order type automatically sells your position once it reaches a specified "take profit" price. It's essentially a limit order set above the current market price for a long position.
When to use: To lock in profits when a stock reaches your target price without constantly monitoring the market.
Caution: If the price only briefly touches your target and then retreats, your order might not get fully filled, or filled at all if the market moves too quickly.
Time-in-Force (TIF):
This specifies how long your order will remain active if it's not immediately filled.
Day (D): Your order is valid only for the current trading day and will expire if not filled by market close. This is the default for most orders.
Good-Til-Cancelled (GTC): Your order remains active until it's filled or you manually cancel it. Webull's GTC orders typically last for 60 days.
Good-Til-Date (GTD): Similar to GTC, but you specify a particular date for the order to expire.
Fill or Kill (FOK): The entire order must be executed immediately and completely, or it's canceled.
Immediate or Cancel (IOC): Any portion of the order that can be filled immediately is, and the remaining unfulfilled portion is canceled.
Step 4: Review and Confirm Your Order
Before hitting that "confirm" button, always double-check everything. This is your last chance to catch any errors!
Order Summary: Webull will provide a summary of your order, including:
The asset you're selling (stock ticker, options contract details).
The quantity.
The order type (Market, Limit, Stop, etc.).
The price (for limit/stop orders).
The time-in-force.
Estimated commissions/fees (if any, though Webull is generally commission-free for stocks/ETFs).
Verify Accuracy:
Is the quantity correct? Did you mean to sell all or just a portion?
Is the order type what you intended? A market order can be dangerous if you meant to use a limit.
Is the price correct? For limit or stop orders, ensure the price reflects your strategy.
Are you selling the right asset? It's easy to accidentally select the wrong ticker if you have many positions.
Click "Confirm" or "Place Order": Once you're absolutely certain, proceed to confirm.
Step 5: Monitor Your Order Status
After placing your order, it's not instantly gone from your mind. You need to verify its execution.
Pending Orders: If you used a limit, stop, or stop-limit order, your order might not fill immediately. You can typically find it under your "Orders" tab (separate from "Positions"). Here you can see if it's "Working," "Partially Filled," or "Filled."
Filled Orders: Once your order is filled, the position will disappear from your "Positions" tab (or the quantity will decrease). You will also receive a notification from Webull confirming the execution.
Order History: You can always review your past trades in your "Order History" or "Trade History" within the app or desktop platform.
Special Considerations:
Margin Accounts: If you're trading on margin, be mindful of your margin level when closing positions. Closing a position can impact your buying power and potentially alleviate a margin call.
Options Expiration: If you hold an options contract that is "in the money" (profitable to exercise) and you don't close it, Webull may automatically exercise it for you at expiration, which could have unintended consequences (like being assigned shares). It's generally best practice to actively manage and close your options positions before expiration if you don't intend to exercise or be assigned.
Short Selling: Remember, if you shorted a stock (sold it first, hoping to buy it back cheaper), you'll use a "Buy to Close" order to exit that position. The steps are largely similar, but the action is "buy" instead of "sell."
By following these steps, you'll be well-equipped to efficiently and confidently sell to close your positions on Webull, whether you're taking profits or managing risk. Happy trading!
10 Related FAQ Questions
Here are 10 "How to" FAQ questions related to selling to close on Webull, with quick answers:
How to Check if My Sell Order Was Filled on Webull?
You can check the status of your sell order by navigating to the "Orders" tab in your Webull app or desktop platform. Filled orders will typically show a "Filled" status, and the position will be removed or updated in your "Positions" tab.
How to Cancel a Sell Order on Webull?
Go to your "Orders" tab, locate the "Working" or "Pending" order you wish to cancel, and tap or click the "Cancel" button next to it. Be quick, as market orders fill almost instantly.
How to Sell Only a Portion of My Position on Webull?
When you initiate the "Sell to Close" process, simply enter the specific quantity of shares or contracts you want to sell, rather than the full amount of your position.
How to Set a Stop Loss When Selling to Close on Webull?
When placing your sell order, select "Stop" or "Stop Limit" as your order type. For a "Stop" order, enter the price at which you want the order to trigger and convert into a market order. For a "Stop Limit," you'll also specify a limit price after the stop is triggered.
How to Set a Take Profit Order on Webull for My Open Position?
When initiating your sell order, you would typically use a "Limit" order type and set your desired profit-taking price. Your order will then only execute if the stock reaches that price or higher.
How to "Buy to Close" a Short Position on Webull?
If you previously "sold to open" a short position, you will need to navigate to that specific shorted stock in your "Positions" tab and then select "Buy" or "Buy to Close" to purchase shares and return them, thereby closing your short.
How to Close an Options Contract on Webull?
Go to your "Account" tab, then find the specific options contract under your "Positions." Select it, and then choose "Sell to Close" to exit your long options position.
How to Close a Margin Position on Webull?
Closing a margin position (a stock you bought with borrowed money) is the same process as selling any other long stock position. You'll use the "Sell to Close" function for the specific stock. Be aware that closing margin positions will affect your buying power and margin utilization.
How to Avoid Auto-Exercise of Options on Webull?
To avoid auto-exercise, you must actively "sell to close" your in-the-money options contracts before their expiration date, especially if you do not have sufficient funds or do not wish to take delivery of the underlying shares.
How to Choose the Best Order Type for Selling to Close on Webull?
The best order type depends on your goal:
Use Market Order for immediate execution (e.g., cutting losses quickly).
Use Limit Order for price control (e.g., locking in specific profits).
Use Stop Order or Stop Limit for automated risk management (e.g., protecting against large losses).
Use Take Profit Order (often a limit order) for automated profit-taking.
