Do you want to learn how to get approved for Webull options? Most people think that getting approved for options trading with Webull is difficult. But that’s not the case!
How to get approved for Webull options? To get approved for Webull Options, you will need to fill out an application and submit it to Webull. Once your application is approved, you will be able to start trading options on their platform.
In this blog post, we’re going to walk you through the entire process so you can be on your way to successful options trading with Webull.
Table of Contents
Webull Options Application
Webull provides the facility of trading in options on its platform for all its users who qualify after applying for it and answering some questions about their financial and investment status.
Follow these steps to get approval for Webull Options
- Open Webull app on mobile or desktop/laptop and log in with your credentials
- Choose Application for Options
- Answer the questions to give all the required information about your investment experience and financial status. This is like providing your risk disclosure information required by Webull to evaluate your qualification for Options Trading.
- Submit the application for approval
- Wait for 24 hours to get your approval.
Preconditions to Get Approval for Webull Options
Webull allows options trading to those users who
- Have sound product knowledge associated with Options Trading.
- Display stable and sound financial resources.
- Have a deep understanding of the risks involved in Options.
- Have rich investment experience in different types of trades, especially in Options Trading.
Webull Options Levels
For investors who are looking for an edge in the market, Webull offers options levels which give real-time data and analysis of current market conditions for options trading. The levels provide a snapshot of the available liquidity and prices for each strike price and expiration date.
The levels are updated continuously during market hours to give investors the latest information on where they can enter or exit a trade. In addition, the levels also show the bid-ask spread and volume at each price point so that investors can make more informed decisions when trading options.
Here is more information about options levels on Webull:
Level 1
Webull’s Level 1 account is perfect for beginner traders. With this account, you can buy long calls and puts. You can also write covered calls and cash-secured puts.
Level 2
At Level 2, traders can buy long calls and puts, as well as write covered calls and cash-secured puts. They can also enter into long straddles and strangles, covered puts, protective puts, and collars. These are all highly versatile strategies that can help traders take advantage of a wide variety of market conditions.
Level 3
At Level 3, selling options on margin becomes an important tool for serious traders. This is when spreads become possible, including credit spreads, debit spreads, iron condors, butterflies, iron flies, and more. With these tools at your disposal, you can make profitable trades with less risk.
You can’t upgrade or downgrade your options trading level. Each Options trading level depends directly on your risk assessment result and is calculated with the inputs you provide while applying for it in Webull.
Webull facilitates serious investors interested in Trading Options to identify the issues with their financial and risk management profile and correct them.
If you identify some shortcomings in your investment profile that are hindering the successful approval of Options Trading in Webull then you can only reapply.
The new profile is again processed by Webull, evaluated and if you now qualify you will get approval to trade Options. This is a workaround provided by Webull to downgrade or upgrade your Webull Options Trading.
Note: You don’t need to create a new Webull Account for options trading.
Approval Fees For Options Trading
Webull doesn’t charge any fee to give you the required approval for Options Trading. All you need to do is ensure at your end that you are experienced enough for this. Decide that you are financially ready to take the risk of Options Trading and fill up the application.
It is also very cheap to trade options on Webull as there are $0 charges. It applies to all aspects of options trading whether commissions, contract fees, assignment/exercise fees.
However, you should note that the accounts need to be funded with settled cash to have sufficient buying power available for your trades.
How Long Does It Take To Get Approved For Options Webull?
It usually takes 24 to 48 hours to get approved for options trading on Webull.
In order to speed up the process, you can have your bank account and Social Security number ready when you sign up. You will also need to complete a W-9 form so that we can verify your identity and Tax Identification Number.
FAQ
Why Is Webull Not Letting Me Buy Options?
Webull is not letting you buy options because it may be that you do not meet the requirements to trade options. In order to trade options, you must have a margin account and you must meet the minimum equity requirement.
A margin account is an account that allows you to borrow money from your broker in order to purchase securities. The margin requirement is the amount of money that you must have in your account in order to place a trade. The minimum equity requirement is the amount of money that your broker requires you to have in your account in order to place a trade.
If you do not meet the requirements to trade options, then Webull will not allow you to place those trades.
You can reapply for your Webull Options trading if it has been previously rejected.
After rejection of your application for Webull Options you must identify the reasons for rejection. Figure out that which of your financial, risk tolerance or experience profile data can be improved before reapplication.
Work on these issues and apply again. Webull will review your Options trading level. Now if all goes well you can get approval for your options trading.
Follow these steps to reapply for a rejected Webull Options Application
- Click on the Webull icon available at the bottom-center of the Webull interface.
- Enter the details next to the Total Account Value.
- Click on Trading Access to Reapply at the bottom of the interface.
- Wait for 24 hours for approval after reapplying.
Why I Need to Apply for Webull Options Trading?
Trading in options is a right without an obligation to buy or sell a particular asset at a pre-determined price at a fixed time in the future.
In general, the assets in this context of options can be anything. For example, stocks, indexes, or commodities. On Webull, the underlying assets are only stocks and indexes and not commodities.
Options trading comes with a lot of risks. Many people do not wish to take such risks. Providing a default approval for all users for options trading in the app/ platform will be irrelevant for such investors.
Options trading involve a lot of risks and Webull makes it mandatory to disclose your experience and financial status before allowing you options Trading. Webull doesn’t allow this facility to all users by default. This also prevents any accidental investments in options by the users.
If you are thinking about Options Trading, Webull wants you to understand the risks clearly and then decide. So, that’s why you need to exclusively apply for Webull options trading.
