Securities trading is offered to self-directed customers by Webull Financial LLC, a broker dealer registered with the Securities and Exchange Commission (SEC). Webull Financial LLC is a member of the Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC), The New York Stock Exchange (NYSE), NASDAQ and Cboe EDGX Exchange, Inc (CBOE EDGX).
Webull Financial, LLC is a CFTC registered Futures Commission Merchant and NFA Member. Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement and other relevant Futures Disclosures located at www.webull.com/fcm-disclosures prior to trading futures products. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).
Advisory accounts and services are provided by Webull Advisors LLC (also known as "Webull Advisors"). Webull Advisors is an Investment Advisor registered with and regulated by the SEC under the Investment Advisors Act of 1940. Registration does not imply a level of skill or training. See additional information on the Disclosures webpage. Trades in your Webull Advisors account are executed by Webull Financial LLC.
Webull Financial LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 in any cash awaiting reinvestment). An explanatory brochure is available upon request or at www.sipc.org. Webull Financial LLC’s clearing firm Apex Clearing Corp has purchased an additional insurance policy. The coverage limits provide protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities.
Options trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Losses can potentially exceed the initial required deposit. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options before trading options.
All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Diversification does not eliminate the risk of experiencing investment losses. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges are subject to Webull Financial, LLC review and approval. Leverage carries a high level of risk and is not suitable for all investors. Greater leverage creates greater losses in the event of adverse market movements.
Investors should be aware that system response, execution price, speed, liquidity, market data, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Market volatility, volume and system availability may delay account access and trade executions.
Free trading of stocks, ETFs, and options refers to $0 commissions for WebullFinancial LLC self-directed individual cash or margin brokerage accounts and IRAs that trade U.S. listed securities via mobile devices, desktopor website products. A $0.55 per contract fee applies for certain options trades.Relevant regulatory and exchange fees may apply. Please refer to our Fee Schedule for more details.
No content on the Webull Financial LLC website shall be considered as a recommendation or solicitation for the purchase or sale of securities, options, or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.
FAQs
SPX has one major strategic advantage over SPY….
What is the difference between SPX and SPY options? ›
SPY options are American-style meaning option holders can exercise their options at any time before expiration. In contrast, SPX options are European style, meaning they can only be exercised on the expiration date. As a result, index options sellers don't have any early assignment risk.
Why can't I trade SPX? ›
SPX: The Index
SPX, also referred to as the S&P 500 index, is a broad-based market index that tracks the performance of 500 large-cap stocks listed on U.S. exchanges. Unlike SPY, which is an ETF, SPX represents the actual index itself and cannot be directly traded.
What is the difference between SPXW and SPX? ›
SPX options are AM-settled options that expire monthly on the third Friday. SPXW options are weekly (and daily) options that expire after market close (PM-settled). On the AM-settled options, the last day of trading is the Thursday before the expiration date.
What is the difference between SPXL and SPY options? ›
Direxion Daily S&P 500 Bull 3X Shares (SPXL) has a higher volatility of 9.30% compared to SPDR S&P 500 ETF (SPY) at 3.10%. This indicates that SPXL's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure.
What is the difference between SPX SPY and ES? ›
ES: Enjoy razor-thin spreads, keeping your transaction costs on a diet. SPX: Depending on the derivative, spreads can vary but often remain competitive. SPY: With high volume comes tight spreads - trade without giving too much away to the market.
Can you trade SPX options all day? ›
Global Trading Hours: Trade SPX, SPX Weeklys, and XSP index options across all time zones, nearly 24 hours a day 5 days a week.
Do SPX options settle to cash? ›
Strike selection in this instrument is excellent, offering half-point and one point strikes. SPY has a standard Friday expiration, and has penny wide bid ask spreads due to its liquidity. The SPX index is cash settled, and is less liquid than SPY.
Can you trade SPX after hours with Webull? ›
Yes, you can trade during extended hours by placing limit orders and selecting "Include after hours." Pre-market hours are 4:00 AM - 9:30 AM EST and after-hours trading is 4:00 PM - 8:00 PM EST.
Do SPX options expire worthless? ›
If an option expires out-of-the-money, it therefore expires worthless, and it disappears from the account. There are some cash-settled products like SPX that do not have shares, so ITM options simply settle to cash at expiration.
European - SPX/SPXW options generally may be exercised only on the expiration date. Trading in SPX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value (i.e., the expiration date) is calculated, 3:15pm CT.
Is trading SPX risky? ›
The cash settlement feature of SPX options means that traders do not have to worry about the actual delivery of the underlying shares upon expiration or assignment, as there's no physical assignment. This significantly reduces the operational burden and risks associated with holding or delivering the underlying asset.
Is it better to trade SPY or SPX options? ›
Liquidity of SPX and SPY Options
ETFs are known for being broad-based. Since SPY options have tighter markets, they are known to be more liquid than SPX options. SPY options usually feature a tighter speed between their bid and offer than SPX options making them more price efficient for traders and investors.
Are SPX options taxed differently? ›
If you traded any broad-based index options that are cash-settled, such as SPX, NDX, VIX, any outright futures contract, or option on futures, any gains/losses are subject to different tax treatment–60% long-term and 40% short-term.
At what time do SPX options expire? ›
SPX offers options with end-of-month (EOM) expiration. SPX EOM options feature expiration dates that fall on the last business day of the month, as opposed to the standard third Friday of the month expirations. SPX EOM options are PM-settled. Trading in expiring SPX EOMs closes at 3:00 pm (CT) on their expiration date.
Is SPY different than S&P 500? ›
The SPDR S&P 500 ETF is listed on the New York Stock Exchange and trades under the ticker symbol SPY. The SPY's price tracks the S&P 500 index. The SPDR S&P 500 ETF allows investors to track the performance of the US economy without having to buy all the stocks listed on the S&P 500 directly.
Is SPY a derivative of SPX? ›
In summary, SPX is the S&P 500 index itself, while SPY is an ETF that tracks the performance of the S&P 500. Investors often use SPY as a way to gain exposure to the broader market or implement trading strategies based on S&P 500 movements.
Do SPX options get exercised? ›
European - SPX/SPXW options generally may be exercised only on the expiration date. Trading in SPX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value (i.e., the expiration date) is calculated, 3:15pm CT.
Can I trade SPX options on Robinhood? ›
Sign up for a Robinhood brokerage account to buy or sell SPXC stock and options commission-free. Other fees may apply.
