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Written by Cho Evelína on March 25, 2023
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Webull Buying Power Explained In 2023

Buying power is the amount of money that an investor has available to purchase securities.

It includes the total cash held in the brokerage account, as well as any available margin.

Webull, like other brokerages, provides investors with buying power, which allows them to trade in the stock market:

  • Webull offers two types of buying power for margin accounts: Overnight Buying Power (ONBP) and Day Trade Buying Power (DTBP).
  • Additionally, the platform provides instant buying power, allowing investors to start trading before their funds are fully settled.

Overnight Buying Power (ONBP)

ONBP is the amount of money available to buy securities that an investor can hold overnight.

In most cases, the ONBP is double the cash on hand in the account.

For example, if an investor has $10,000 cash in their account, their ONBP would be $20,000.

Day Trade Buying Power (DTBP)

DTBP is the amount of money available for placing trades on a given trading day.

The DTBP is determined at the beginning of the day and will not increase based on sales of marginable stocks held overnight or deposits made on the same day. Investors will need to wait until the following day to see the DTBP reflected in their account from these actions.

A purchase during the current day will decrease the DTBP, while a subsequent sale of that stock (a day trade) will increase it again.

Instant Buying Power

Webull offers instant buying power, which provides immediate access to a portion of funds deposited via Automated Clearing House (ACH).

This allows investors to start trading before their funds are fully settled, so they don’t miss market opportunities.

The amount of instant buying power available depends on the amount of funds deposited via ACH.

It is important to note that instant buying power is not the same as ONBP or DTBP.

Instant buying power is based on the amount of funds deposited via ACH, while ONBP and DTBP are based on the cash and margin available in the account.

Final Thoughts

By knowing how these different types of buying power work, investors can make informed decisions and better manage their portfolios.

It is recommended to read Webull's website and the disclosures to understand how each buying power works and how it may affect your investments.

This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.

Article written by Cho Evelína

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