You're here because you want to master one of the most powerful tools in a trader's arsenal on Webull: Fully Paid Securities Lending (FP/SL) combined with Take Profit and Stop Loss orders. This isn't just about placing a trade; it's about optimizing your returns and protecting your capital. Let's dive in!
Understanding FP/SL and Its Synergy with Take Profit/Stop Loss on Webull
Before we get into the "how-to," let's clarify what we're talking about.
Fully Paid Securities Lending (FP/SL): Imagine you own shares of a stock, say XYZ. Instead of them just sitting there, Webull, through its FP/SL program, allows you to lend out those shares to other market participants (often short sellers). In return, you earn a small fee, providing you with passive income on assets you already hold. It's like renting out a spare room in your house; you still own the house, but you're making money from it.
Important Note: While your shares are out on loan, you temporarily lose shareholder voting rights and SIPC insurance for those specific shares. However, you retain economic control – you can still sell them or recall them at any time. Webull typically holds collateral (usually cash) equal to or greater than the value of the loaned securities to mitigate risk.
Take Profit (TP) and Stop Loss (SL) Orders: These are crucial risk management tools.
Take Profit (TP) Order: This is an order to automatically sell your shares once they reach a predetermined profit target. It helps you lock in gains without constantly monitoring the market.
Stop Loss (SL) Order: This is an order to automatically sell your shares if the price falls to a certain level. It's your safety net, designed to limit potential losses on a trade.
The real power comes from combining these. You can earn passive income from your holdings via FP/SL while simultaneously setting up automated profit-taking and loss-limiting mechanisms. This allows for a more hands-off approach to managing your investments once you've set your parameters.
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| How Does Fpsl Work On Webull |
Step 1: Engaging with Webull's FP/SL Program – Are You In?
Alright, let's kick things off! Before you can even think about lending out your shares, you need to make sure you're enrolled in Webull's Fully Paid Securities Lending Program. Have you already opted into this program? If not, that's your first stop!
Sub-heading: Checking Your FP/SL Enrollment Status
Open the Webull App: Launch the Webull application on your mobile device or navigate to the Webull desktop platform.
Navigate to Your Account: Look for the "Account" or "Profile" icon, usually located at the bottom right corner of the mobile app or in the top menu on the desktop.
Find "More Services" or "Account Details": Within your account section, you'll need to locate options related to your account services or details. This might be under a "More Services," "Asset Details," or similar heading.
Locate "Stock Lending Program" / "Fully Paid Securities Lending": Scroll through the options until you find "Stock Lending Program" or "Fully Paid Securities Lending."
Review Enrollment Status: Here, you'll see if you are currently enrolled. If you're not, there should be an option to learn more and opt-in.
Sub-heading: Opting into the FP/SL Program
If you're not yet enrolled, follow these general steps (the exact wording may vary slightly):
Read the Agreement: Webull will present you with the terms and conditions of the Fully Paid Securities Lending Program. It is crucial to read this document thoroughly to understand the benefits, risks, and implications (like the temporary loss of voting rights and SIPC insurance for loaned shares, and how dividends are treated).
Agree to the Terms: If you understand and agree, you'll typically confirm your acceptance.
Confirmation: Webull will confirm your enrollment. Keep in mind that enrollment might not mean your shares are immediately lent out. Lending is demand-driven, so it depends on whether there are borrowers interested in the specific securities you hold.
Step 2: Acquiring Your Securities – The Foundation of Your Strategy
You can't lend out shares or set profit/loss targets on them if you don't own them! This step focuses on how to buy the stocks you intend to hold and potentially lend out.
QuickTip: Slow down when you hit numbers or data.
Sub-heading: Placing a Buy Order for Your Desired Stock
Search for the Stock: In the Webull app or desktop platform, use the search bar (usually a magnifying glass icon) to find the ticker symbol of the stock you want to buy (e.g., AAPL for Apple, TSLA for Tesla).
Go to the Trading Interface: Once you've selected the stock, you'll typically see its chart and various options. Look for a prominent "Trade" or "Buy" button.
Choose Your Order Type:
Market Order: This executes your trade immediately at the best available current market price. Be cautious with market orders, especially for volatile stocks, as the price can fluctuate rapidly.
Limit Order: This allows you to specify the maximum price you are willing to pay for the stock. Your order will only be filled if the stock reaches that price or better. This is generally recommended for more controlled entry.
Specify Quantity: Enter the number of shares you wish to purchase.
Set Time-in-Force (TIF):
Day: The order is only active for the current trading day. If it's not filled by market close, it expires.
Good-Til-Cancelled (GTC): The order remains active until it's filled or you manually cancel it. This is often preferred for setting long-term price targets.
Review and Confirm: Double-check all the details of your order (stock, quantity, price, order type, TIF) before confirming the trade.
Step 3: Implementing Take Profit (TP) and Stop Loss (SL) Orders – Your Risk Management Powerhouse
This is where you proactively manage your potential gains and losses. Webull offers a "Limit + Take Profit/Stop Loss Order" which is essentially a conditional order that allows you to attach TP and SL orders to your primary trade.
Sub-heading: Placing a Combined TP/SL Order with Your Initial Buy
This method is ideal for setting your profit and loss targets at the same time you enter your position.
Initiate a Buy Order (as in Step 2): Go to the stock's trading interface and select "Buy."
Choose "Limit Order" as Primary: This is typically the primary order type that supports attached TP/SL.
Enter Your Buy Limit Price and Quantity: Set the price you want to buy the stock at and the number of shares.
Locate "Take Profit/Stop Loss" or "Advanced Orders": Look for an option that allows you to add Take Profit and Stop Loss. This might be a toggle or a button labeled "Take Profit/Stop Loss," "Conditional Orders," or "Advanced."
Configure Your Take Profit (TP):
Take Profit Price: Enter the price at which you want to sell your shares for a profit. For a buy order, this price will be higher than your entry price.
Limit Price for TP: This is the specific price your TP order will try to execute at once triggered. Often, you can set this to be the same as your Take Profit Price for simplicity, or slightly below it to increase the likelihood of execution if there's a quick price drop after hitting your TP.
Considerations: How much profit are you aiming for? What's a realistic target based on your analysis?
Configure Your Stop Loss (SL):
Stop Price: Enter the price at which you want your stop-loss order to be triggered. For a buy order, this price will be lower than your entry price.
Limit Price for SL (Optional, but Recommended): You can choose a "Stop Limit" order for your stop loss. This means once the stop price is hit, a limit order is placed at the specified limit price. This helps avoid "slippage" where your order executes far below your stop price in fast-moving markets, but also carries the risk of not being filled if the price blows past your limit. If you use a "Stop Market" order (which is simpler but riskier), it executes at the best available price once triggered.
Considerations: How much are you willing to risk on this trade? Where's a logical point to exit if the trade goes against you?
Set Time-in-Force (TIF) for TP/SL: Ensure the TIF for your TP and SL orders aligns with your primary order, usually GTC (Good-Til-Cancelled) if you want them to remain active indefinitely.
Review and Place Order: Carefully review all the components of your complex order before submitting.
Sub-heading: Adding TP/SL to an Existing Position
If you already own shares and want to add TP/SL orders:
Go to Your Positions: On the Webull app or desktop, navigate to your "Positions" or "Portfolio" section.
Select the Stock: Tap or click on the stock for which you want to set TP/SL.
Choose "Close Position" or "Add TP/SL": You'll typically see an option to "Close Position" or directly "Add TP/SL." If you choose "Close Position," you'll then specify the type of order.
Select "Limit + Take Profit/Stop Loss Order" (or similar): This will bring up the interface to set your targets.
Input TP and SL Prices: Follow the same logic as above for setting your Take Profit price (above current price) and Stop Loss price (below current price).
Confirm Quantity: Ensure the quantity for which you're setting the TP/SL matches your desired amount.
Set Time-in-Force: Again, GTC is usually preferred for existing positions.
Place Order: Review and confirm.
Step 4: Monitoring and Managing Your Orders – Staying Informed
Once your orders are placed, your work isn't entirely done. It's crucial to monitor their status and adjust as needed.
QuickTip: Read with curiosity — ask ‘why’ often.
Sub-heading: Tracking Your Orders
Access Your Orders Tab: On Webull, there's usually a dedicated "Orders" tab or section within your account.
Review Pending Orders: Here, you'll see your active (pending) buy orders, as well as your attached TP/SL orders.
Understand Order Status: Webull will display the status of your orders (e.g., "Working," "Filled," "Canceled," "Triggered").
Key Behavior: When one of your TP or SL sub-orders is partially or fully filled, the other sub-order will be automatically canceled. This prevents you from inadvertently selling the same shares twice.
Triggered but not filled: A stop-loss order, once triggered, becomes a market or limit order. If it's a limit order, it might not fill if the price moves past your limit. A stop-market order aims for immediate execution but at the best available price.
Sub-heading: Modifying or Canceling Orders
Select the Order: In your "Orders" tab, select the specific order you wish to modify or cancel.
Choose "Modify" or "Cancel": Webull provides clear options to either modify the price/quantity or cancel the entire order.
Confirm Changes: Always confirm any modifications or cancellations.
Sub-heading: Adjusting Targets Based on Market Conditions
As your trade progresses, you may want to adjust your TP and SL levels. For example, if the stock is performing well, you might consider moving your Stop Loss up (a "trailing stop") to lock in some profits, or increasing your Take Profit target if you see further upside. This requires manually canceling your existing TP/SL and placing new ones.
Step 5: Understanding the Nuances and Risks – Trade Smartly
While powerful, FP/SL and conditional orders come with their own set of considerations.
Sub-heading: Important Considerations for FP/SL
Demand-Driven: Not all your fully paid shares will be lent out, and the income earned depends on the demand for borrowing that specific stock. "Hard-to-borrow" stocks typically generate higher lending fees.
Dividend Treatment: If your shares are on loan when a dividend is paid, you will receive a "Payment in Lieu" (PIL) of dividends. This cash payment is generally taxed as ordinary income, which may be taxed at a higher rate than qualified dividends.
Shareholder Rights: As mentioned, you temporarily lose voting rights for shares that are on loan.
SIPC Insurance: While Webull holds collateral, the loaned shares themselves are not covered by SIPC insurance during the lending period.
Sub-heading: Important Considerations for TP/SL Orders
No Guarantee of Execution: Especially with stop-limit orders or in volatile markets, there's no guarantee that your order will be executed at your exact stop or limit price. Market orders for stop-loss attempt to fill immediately but at the prevailing market price, which can be significantly different in fast-moving conditions.
Single Security Support: TP/SL orders on Webull typically only support the same security as the primary order.
Time-in-Force Consistency: The TIF for your primary order and sub-orders (TP/SL) must generally be consistent.
Position Closure Quantity: If your TP/SL order is meant to close a position and the quantity specified is more than what you currently hold at the time of triggering, the order will not be executed.
Trigger Once: Once a conditional order (like a TP or SL) is triggered, the condition will not activate again, regardless of whether the order is fully executed or not. If you need it to be active again, you must place a new order.
10 Related FAQ Questions
QuickTip: Skim slowly, read deeply.
How to enroll in Webull's Fully Paid Securities Lending Program?
To enroll, go to your "Account" section in the Webull app/desktop, find "Stock Lending Program" or "Fully Paid Securities Lending," and follow the prompts to read and agree to the terms.
How to set a Take Profit order on Webull?
When placing a buy or sell order, look for "Take Profit/Stop Loss" or "Advanced Orders," then input your desired Take Profit price and, optionally, a limit price for the execution of that order.
How to set a Stop Loss order on Webull?
Similar to Take Profit, find the "Take Profit/Stop Loss" or "Advanced Orders" option, then input your Stop Loss trigger price and, for a Stop Limit order, a corresponding limit price.
How to add Take Profit and Stop Loss to an existing position on Webull?
Navigate to your "Positions" in Webull, select the stock, and then choose "Add TP/SL" or "Close Position" and configure the conditional orders from there.
How to check the status of my FP/SL earnings on Webull?
Your FP/SL earnings are typically shown in your account statements or within the "Stock Lending Program" section, detailing any interest earned from loaned shares.
QuickTip: Focus on one paragraph at a time.
How to modify or cancel a pending Take Profit or Stop Loss order on Webull?
Go to your "Orders" tab, select the specific pending order, and you will see options to "Modify" or "Cancel" it.
How does a Stop Limit order differ from a Stop Market order on Webull?
A Stop Market order, once triggered, executes immediately at the best available market price. A Stop Limit order, once triggered, places a limit order at a specified price, meaning it might not fill if the price moves past your limit.
How to ensure my Take Profit/Stop Loss orders are active after market hours?
Webull's sub-orders (TP/SL) are generally only triggered during regular trading hours. Your primary order might be set to include extended hours, but always confirm the settings for the sub-orders.
How to understand the tax implications of Webull's FP/SL program?
Income from FP/SL (payments in lieu of dividends) is typically taxed as ordinary income, which might be at a higher rate than qualified dividends. Consult a tax professional for personalized advice.
How to maximize the benefits of FP/SL and TP/SL on Webull?
To maximize benefits, consider lending out shares of high-demand (hard-to-borrow) stocks, and consistently use TP/SL orders to automate profit-taking and loss-limiting, allowing you to manage risk efficiently while potentially earning passive income.
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