What is the "390 Rule"?

Per the Securities And Exchange Commission (“SEC”) approval of Chicago Board Options Exchange (“CBOE”) rule regarding professional trading, clients that place more than 390 option orders per day on average in a given calendar month is designated as “professional customers” for the duration of the following calendar month.

For example, if a client places more than 390 option orders per day on average during a calendar month, the client will be designated as a “professional customer” for the following calendar month. Accordingly, if a client exceeds the applicable monthly threshold during February, the client will be designated as a “professional customer” for the month of March.

An option order is counted as one order if it is submitted as one of the following order types:

-Single leg order

-Complex order comprised of 8 legs or fewer

-Cancel

This “390 Rule” is designed to identify professional customers who compete with market makers who otherwise should not receive priority over retail clients’ orders.

Webull does not currently support professional customers as special order handling procedures are required.

If your account reaches 75% of the monthly threshold, you will receive a reminder notification.

If your account reaches 85% of the monthly threshold (6,630 orders), you can only liquidate your options positions for the remainder of the current calendar month.

If your account reaches 100% of the monthly threshold, you will only be allowed to liquidate your options positions for the remainder of the current calendar month and the following calendar month. This restriction will be lifted at the start of the subsequent calendar month.