How to Short Stocks on Webull: Step-by-Step Guide for 2026

Can You Short Sell on Webull?

Yes. Webull supports short selling, but only if you have a margin account with at least $2,000 deposited. If you are using a cash account, you cannot short. If you have never shorted before, read our complete guide to short selling first to understand the mechanics.

Think of it like getting a driver’s license before renting a car. You need the margin account (the license) before Webull will let you borrow shares (the car).

Step 1: Upgrade to a Margin Account

If you have a cash account on Webull, you need to upgrade:

1. Open Webull app or desktop
2. Tap your profile icon (bottom right on mobile)
3. Go to Settings then Account and Security
4. Look for Account Type and tap Upgrade to Margin
5. Read and accept the margin agreement
6. Deposit at least $2,000 if you have not already

Margin approval usually takes 1-2 business days. Once approved, your account type shows “Margin” instead of “Cash.”

Step 2: Check If the Stock Is Shortable

Not every stock can be shorted on Webull. The stock needs to be in Webull’s shortable inventory.

1. Search for the stock ticker
2. Look at the stock’s detail page
3. If the stock is available to short, you will see a “Sell” or “Short” button enabled
4. Some stocks show “Shortable” with a green indicator

If the stock is not available, it means Webull does not have shares to lend. This is common with low-float penny stocks and recently IPO’d companies. For hard-to-borrow stocks, brokers like Centerpoint and Cobra have much larger short inventories.

Step 3: Place a Short Sell Order

1. Navigate to the stock you want to short
2. Tap Trade then Sell
3. Since you do not own any shares, Webull treats this as a “Short Sell”
4. Enter the number of shares
5. Choose your order type. We recommend limit orders over market orders, especially for short selling where slippage can work against you
6. Set your price and tap Sell

Your position now shows a negative share count. For example, -100 shares of XYZ at $25.

Step 4: Close Your Short Position

When you are ready to take profit or cut a loss:

1. Go to your Positions tab
2. Tap the short position
3. Tap Buy to Cover or simply Buy
4. Enter the number of shares (same as your short position)
5. Execute the order

Once filled, your short position is closed. The difference between your short entry price and your cover price (minus fees) is your profit or loss.

Webull Short Selling Costs

Webull charges $0 commissions, but short selling has additional costs:

• Borrow fee: Varies by stock. Check the rate before shorting. Easy-to-borrow stocks are cheap (under 2% annually). Hard-to-borrow can be expensive.
• Margin interest: Webull charges margin interest on overnight positions. Check their current rates in the app under Account > Margin Rate.
• Regulatory fees: SEC and FINRA fees apply (fractions of a cent per share).

For a full breakdown of all short selling costs, read how much it costs to short a stock.

Webull Short Selling Limitations

Pattern Day Trader rule: If your account is under $25,000, you are limited to 3 day trades per 5 business days. This applies to short sells too. Each short sell plus cover in the same day counts as one day trade.

Limited short inventory: Webull’s short inventory is smaller than brokers like Interactive Brokers or Centerpoint. If you plan to short actively, especially small caps, you may find stocks unavailable on Webull that are shortable elsewhere.

No pre-market or after-hours shorting: Short selling on Webull is limited to regular market hours (9:30 AM to 4:00 PM ET) for most stocks.

Tips for Shorting on Webull

1. Always check VWAP and EMA levels before entering a short
2. Set a stop loss immediately after entry
3. Watch the Level 2 data (available with Webull’s free Nasdaq Level 2 subscription) to confirm selling pressure
4. Start with liquid, large-cap stocks while learning
5. Paper trade shorts on Webull’s simulator before using real money

For a full review of Webull’s platform and features, see our Webull broker review.

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Disclaimer: This article is for educational purposes only and does not constitute financial advice. Short selling involves substantial risk of loss. Always consult a qualified financial advisor before making trading decisions.