So, I’m aware of the T+1 rule for options and T+2 rule for shares, and have been almost exclusively trading options on my Webull cash account. In this post by Conq, it says “This is of the utmost importance. You must only EVER trade options. If you intermingle shares and options, you’ll likely end up triggering a GFV which then disables this loophole…”
Now during the PHUN and DWAC runs, I scalped both of those but with shares because they didn’t have any options at the time. I almost exclusively traded options except for those two (which all happened within the span of a few days) and I’ve never got a GFV. Is this glitch still available for me or have I lost it by simply trading shares at one point?
That quoted part from Conq’s post seems to say that if you get a GFV once (by trading shares) you’ll lose this glitch forever, so then I think I’m good because I’ve never got a GFV in spite of trading shares at one point, but I want to confirm.
Is this glitch basically just to ignore Webull’s GFV warning and trading all your cash infinite times if you only do options? And can I still do that if I now only stick to shares and haven’t had a GFV?
It’s moreso that you should never trade with unsettled funds from share sales. If you only trade options, you’ll never trigger a GFV but it becomes possible if you intermingle shares and options.
Correct, it only “goes away” if you trigger a GFV because you’re locked to only trading on settled cash at that point. You can “get it back” after the GFV falls off (after a year I think).
Yes & yes.
Thank you so much Conq! This changes the game a lot for me!
Just sold some of my SPY calls that I bought with unsettled funds. Will confirm on Monday if this works!
So, it turns out I did get a GFV. Could it be because this was a Friday, and for the glitch to work the next trading day must coincide with the next calendar day, perhaps because Webull’s GFV checkers run every day? This seems like a reasonable hypothesis because I got my GFV notification at 3:53 am (ET). All my cash was settled as of Friday morning and I only traded options on Friday.
If this seems like a reasonable hypothesis, I’m willing to do this again on Monday as an experiment so @Conqueror can update his post with this Friday nuance, if it’s true? I’ll only have to wait for 1 more day in addition to the whole year to get back both my GFVs anyway (plus doing dozens of day trades a day instead of infinite, even with GFV, is already making me much better at this than 3 day trades every 5 days), so it may be worth it.
Edit: Actually I’m reconsidering taking a second GFV lol. I was thinking that being restricted to buying only with settled funds isn’t that bad, but if I ever want to hold positions overnight, it’d be nice to buy with unsettled funds lol.
Hmmm, I’m not sure. We’ve had people doing this for months at a time and I’m sure someone had to of traded on a Friday before.
Also yeah, being able to trade and sell same day is more the important part, the unlimited thing is just a bonus.
I got a GFV when I did something similar yesterday(Wednesday). I got in and out of some MSFT calls twice and ended up getting a GFV so looks like its not a Friday thing. Maybe Webull changed the way they handle settlements?
I have an update on this! I sold options yesterday that I bought with unsettled funds* expecting to get a GFV, but I did not get one lol. To top it off, I had sold shares the same day, so not sure if the glitch is back lol. I was thinking maybe it’s the fact that it a weekday that I did this like I hypothesized earlier, but another person in this thread said that didn’t work for them.
*Wasn’t being dumb or anything if anyone’s wondering. I took a few lottos on BGFV on the power hour pump knowing it’ll dump today bc I spotted some realllllyy cheap calls, and my profits were fat enough that I thought it was worth the GFV.
This only works now if your account is under 1K.
What’s the exact limit? I bought and sold two HPQ contracts today with a $1k account and no GFV. It’s barely above $1k, but is above…
Edit- I did get one GFV doing this, the first day. But I had used unsettled funds not realizing it because I was acting like a madman when I had scalping become available to me. There also seems (seemed?) to be a cutoff for using unsettled and incurring GFV selling contracts bought with partially unsettled funds.
There were one or two plays I first intended to swing that ended up needing to be cut same day while still green, and I had used unsettled funds for small portions of those contracts (like 1-10% unsettled). Didn’t make a habit of it though.
This is interesting, what led you to this conclusion?
While RH on cash accounts won’t allow you to trade with unsettled funds. How do other brokers allow it? Also I have a Webull account and I’ve tried to trade with unsettled funds with no success. Is it something I have to do for that on the app or automatically allows you to trade?
Awhile ago I got a GFV doing the same thing I always did, but never thought much of it since it didn’t happen again.
Then two weeks ago it happened again and someone posted a Reddit convo of people saying their was a limit.
It matched my experience with my own account. The first time I went over 1K, I went under the next day which is why the GFV never happened again until two weeks ago when I was over 1K again.
Of course…before long I was under again and didn’t have any GFV problems.
So in short, losing profits is how I reached this conclusion.
It’s funny that this isn’t a glitch but something webull is fully aware of. Knowing that, it makes since that they would have certain restrictions that seemed random at first.