About short selling

1. Calculation method of U.S. stock securities short selling interest rate

The interest rate of short selling will change dynamically according to the daily market. Please refer to the system data for the actual interest rate. You can check the charging standards on the page of margin financing and short selling of stocks.

* The interest rate for US short selling will remain at 0% during the promotions period, until further notice.

2. Short Sell Borrow Fee

The client needs to pay the fee for short selling stocks from the lender/Webull HK. In addition, buying securities with the funds borrowed from Webull, have to pay the corresponding interest and fees. The total monthly loan interest will be charged on the last trading day of the US stock market each month, and the loan interest of the current month will be deducted from the fund balance and included in the initial principal of the next month.

3. Short selling without waiting

If you place a short-selling order for the relevant marginable stocks, the system will automatically complete the short-selling process for you. Now, only Easy to Borrow (ETB) rating of stocks will be provided.

Note: Easy to Borrow (ETB) refers to shortable stocks that are easier to borrow.

4. Forced liquidation

The Client understands that he/she is responsible for maintaining the required minimum level of margin ratio at all times. As the price of the borrowed Securities may fluctuate substantially at any time, the Client understands that his/her short positions may be forced to be closed out at any time without the consent of and notice to the Client, and the Client will be liable for any resulting deficit amount in the account (including but not limited to the loss of the position and the interest payable).

For example , Short position may be forced to close in the following situations:

- The net assets of the account are less than the maintenance margin;

- Insufficient amount of securities available for lending by the broker;

- The lender of the stock requires the return of the stock;

- A corporate action occurs.

What is the specific impact of corporate actions during short selling?

Corporate actions, Webull conducts corresponding operations in accordance with the company announcements of listed companies.

E.g: When cash dividends / special dividends / stock dividends is executed on your short position, the borrower needs to pay the corresponding dividends to the lender.