To purchase 100 shares of a $60
stock on margin
Stock price rises to
$65
per share
Stock price falls to
$55
per share
from your original investment
$3000
$3000
from your original investment
$3000
You borrow
$3000
of your funds
You invest
$3000
of your funds
of Webull funds
Total stock purchase*
$6000
Your total
stock value
$6500
Your total
stock value
$5500
Remaining value after paying money borrowed on margin from Webull
$2500
Remaining value after paying money borrowed on margin from Webull
$3500
How trading securities on margin works
Here is an example to help you get a better understanding of how margin may amplify your profits as well as your losses based on the directional movement of a stock's price.Additional costs arise from margin interests accrued daily.
*The examples above do not include the cost to borrow. Please refer to https://www.webull.com/pricing for more info.