Webull Futures Trading 101

Webull is one of the most popular trading platforms on the planet, and it's no wonder that with leveraged trades becoming ever more prevalent, Webull's futures trading platform is the talk of the town. There used to be a time when trading futures or options in general was something that was only available to Wall Street insiders or institutional capital. Not anymore. Today, platforms like Webull are changing that narrative, and futures are becoming a tool that everyday investors can use to diversify, hedge, and amplify their strategies. In this article, we will break down what futures are, how Webull makes them accessible, the strategies that work, the risks you need to know, and how our community is already using futures to play smarter.

What are futures?

A futures contract is a standardized agreement to buy or sell an asset at a set price on a specific date in the future. Unlike stocks, where you’re literally buying ownership in a company, futures allow you to speculate on the direction of prices, whether it’s indexes like the S&P 500, commodities like oil or gold, currencies like the euro, or even agricultural products. Futures are also a way to trade with leverage, as the investor only puts down a fraction of the contract value, meaning that if prices move in the right direction for the investor, they can get 10x or 20x their initial capital.

Think of futures as a forward-looking handshake with rules written in stone: both sides commit to a price today, for a transaction tomorrow.

Because futures use leverage, they also incorporate a substantial amount of risk. When you invest in futures on margin, and the price goes in a differnet direction, you can also -10x or -20x your initial investment and lose everything. This is why individuals should always look to undergo some type of education or gain some real-life experience before using leverage when investing.

How to get started with Webull futures:

Step 1: Apply for a futures account

In the Webull app, go to account settings and select “Futures trading.” Complete the questionnaire and disclosures. Approval can take minutes to a few days.

Step 2: Fund a margin-enabled account

Deposit cash or marginable securities to meet Webull’s requirements. You’ll need enough for both initial and maintenance margin.

Step 3: Start with micro contracts

Begin with CME micro futures such as MES, MNQ, MYM, or M2K. They’re 1/10th the size of standard E-minis and require less margin.

Step 4: Check margin rates

Review Webull’s margin page for intraday and overnight requirements on the contracts you plan to trade. Intraday rates are usually lower.

Step 5: Paper trade first

Use Webull’s paper trading mode to practice. Track entries, exits, and risk in a journal before moving real money.

Step 6: Define risk per trade

Set rules for how much of your account you’ll risk on each position, typically 0.5–1%. Use stop-losses to prevent major drawdowns.

Webull futures trading platform

Futures once lived behind the iron gates of specialized brokers and steep account requirements, but Webull has changed that. Webull offers things that are accessible to the everyday man or woman by offering micro contracts, lower margins, and simplified onboarding. This helps Webull make futures trading accessible to everyday investors who want to experiment with leverage and hedging, but don't want to put huge amounts of money at risk.

Platform availability and requirements

Webull offers futures trading through Webull Futures LLC, a CFTC-registered broker. To get started, investors must meet a few key requirements:

• Have a Webull account with futures trading approval.
• Meet the minimum margin requirement (often $50–$100 for micro contracts).
• Be comfortable handling leverage, since futures inherently carry higher risk.

Costs and fees of trading Webull futures

Futures on Webull come with specific costs compared to traditional brokers.

Webull's main USP is its commission costs compared to industry averages.

Commission costs: Webull vs. traditional brokers

Webull has one of the lowest commission rates on trades for any major futures broker in the industry. Commissions add up fast when you’re trading contracts day in and day out, and every dollar you save on fees is a dollar that stays compounding in your account. The chart below compares the average commission per contract across both micro and E-mini futures, showing just how much lower the entry barrier is on Webull compared to traditional brokers.

Supported futures contracts

Webull’s lineup focuses on micro index futures, giving investors broad exposure to U.S. equity markets at a fraction of the cost:

• Micro E-mini S&P 500 (MES)
• Micro E-mini Nasdaq 100 (MNQ)
• Micro E-mini Dow (MYM)
• Micro E-mini Russell 2000 (M2K)

Each of these micro contracts represents 1/10th the size of traditional E-minis, which means lower notional exposure and reduced risk per trade. For example, instead of controlling ~$200,000 worth of the S&P 500 with a single E-mini contract, a micro lets you control ~$20,000, making it far more approachable for retail traders.

"For stock trading platforms, one thing I look out for is their trading fees, aiming for free or close to free trading. Because fees can eat away at your portfolio quicker than you think. The other thing is partial/fractional shares. Some platforms allow you to buy partial shares, while some don’t. Transferring assets between firms with different policies in terms of partial share may require you to sell your shares early." Emily Collins, Founder of Money For Mamas.

How do traders use the Webull futures trading platform?

Hedging

Futures are among the most amazing hedging instruments available because they let you take direct, broad exposure to indexes. If your portfolio is concentrated in a sector like technology, even small corrections can sting. A single futures contract, properly sized, can smooth those bumps.

Example: Hedging a concentrated tech portfolio

Imagine you’re holding a $50,000 portfolio, with roughly 60% allocated to tech stocks like Apple, Microsoft, and Nvidia. Tech has been on a tear, but you’re worried about a short-term correction. Selling your positions would mean losing long-term exposure and potentially triggering capital gains taxes. That’s where futures come in as a hedge.

• Shorting 2 MNQ contracts (~$40,000 notional exposure) would nearly neutralize the portfolio’s tech exposure.
• Shorting half a contract’s worth of exposure (via smaller position sizing) could soften the blow while still letting you ride out some gains.

Institutions use this approach all the time because it’s efficient, liquid, and scalable. For retail investors, hedging with futures can provide a steady way to stay invested while building resilience against downturns, a form of community insurance against volatility.

Webull futures trading using leverage

Leverage is what makes futures exciting and dangerous. Webull’s use of micro contracts makes leverage more approachable, but it doesn’t remove the risk.

• With as little as $100 in margin, you can control ~$20,000 of Nasdaq exposure through MNQ.
• A 1% market move equals $200 in gains or losses, double your margin in a single swing.

Short-term speculation

Not every futures trade is about taking a long-term stance and using it simply as a hedge. On Webull, a lot of traders use them for short, tactical bursts tied to whatever is moving markets. Events such as futures jumping on a Fed rate surprise, or Nasdaq contracts shifting on the back of an Apple or Microsoft earnings report, can result in thousands of Webull traders piling into futures. Because they trade nearly around the clock, they’re also a way to react to overnight headlines from Asia or Europe when the stock market is closed. In practice, futures are best used as a quick layer of exposure on top of a core portfolio, not as a substitute for it.

Risks with trading futures on Webull

Trading futures on Webull lowers the entry barrier, but there will always be a fundamental risk when it comes to trading futures. Futures magnify both opportunities and mistakes. Here are some of the things you should take into account.

Volatility and leverage

Futures are leveraged by design, and leverage magnifies volatility. That means even a tiny move in the index can have an outsized impact on your account balance.

• Tick size: For Micro E-mini S&P 500 (MES), 1 tick = 0.25 index points = $1.25.
• Scaling impact: A 40-point move in the S&P 500 = 160 ticks = $200 swing on a single MES contract.
• Relative risk: For a trader using only $100 in margin, that $200 swing equals 200% of margin capital — enough to wipe out the account instantly.

“Trade notional, not margin.” Just because Webull lets you open a contract with $50–$100 margin doesn’t mean that’s what you should risk. Instead, size positions relative to your total portfolio, not the minimum required.

Liquidity and execution risks

Micro futures are generally liquid, especially on indexes like the S&P 500 or Nasdaq. But liquidity isn’t guaranteed in every market condition, and poor execution can cost you money.

Webull Futures vs. options

Webull offers futures trading as well as options trading, but what is the difference exactly? The short answer: futures are pure exposure (no time decay) with built-in leverage and near-24h access; options are flexible and allow defined-risk structures but decay over time (theta). Pros use both: futures for fast, clean exposure or hedges; options for asymmetric payoffs, income, and custom risk shaping.

When futures may fit better

• You need broad, immediate, and clean exposure (e.g., hedge S&P/Nasdaq beta without touching your stocks).
• You want near-24h access around global catalysts (rates, CPI, geopolitics).

When options may fit better

• You want defined-risk structures or income via spreads/covered positions.
• You need asymmetric payoffs (limited loss, large potential upside) or fine-tuned hedges around events.

• Futures score high on leverage, gross risk, and liquidity, with minimal time decay and moderate flexibility, which is great for clean, broad exposure or fast hedges.
• Options score high on flexibility (you can shape payoffs) and time-decay impact (theta works against buyers), with lower inherent leverage/risk for buyers.

FAQ

How much money do I need to start trading futures?

You can technically start with just a few hundred dollars, but risk management suggests having at least $2,000–$5,000 in an account to weather volatility.

Are futures riskier than stocks or options?

Yes, because leverage and unlimited loss potential create higher risk. However, when managed correctly, futures can also serve as effective hedging tools.

Can I trade futures on Webull 24/7?

No, futures have specific trading hours depending on the contract (often nearly 23 hours/day, Sunday through Friday). Webull displays exact schedules for each contract.