The basic steps to sell on Robinhood

To sell a stock or cryptocurrency on Robinhood, open the app, find the holding you want to sell, tap it, and then tap the "Sell" button. You'll see the current market price, the number of shares or coins you own, and a field where you can enter how many you want to sell. Robinhood will show you the estimated proceeds before you confirm. Once you tap "Review Order" and then "Submit," the sale goes to the market immediately during trading hours.

The order executes at whatever price the market offers at that moment — you don't get to pick a price unless you use a limit order. For stocks, this happens during market hours (9:30 a.m. to 4 p.m. Eastern on weekdays). Cryptocurrency trades 24/7. If you place an order outside market hours, it queues until the market opens.

After the sale settles, the cash lands in your Robinhood account. For stocks, settlement takes two business days. For crypto, the cash is usually available immediately. You can then transfer the money to your linked bank account or use it to buy something else.

Key Takeaways

  • Tap the holding, select "Sell," enter the quantity, review the price, and submit — the order executes at market price unless you set a limit.
  • Stock orders execute during market hours (9:30 a.m. to 4 p.m. Eastern weekdays); crypto trades around the clock.
  • Stock sales settle in two business days; crypto cash is usually available right away.
  • A limit order lets you name the price you'll accept, but the sale may not happen if the market never reaches that price.
  • You can sell a partial position — you don't have to sell all shares or coins at once.

Market orders versus limit orders

A market order sells immediately at whatever price the market is offering right now. This is the default on Robinhood and the fastest way to exit a position. The downside is that the price you see on your screen may shift slightly by the time your order reaches the exchange, especially if the stock or coin is moving fast. This shift is called slippage.

A limit order lets you name the lowest price you'll accept. If you own a stock trading at $50 and you set a limit order to sell at $52, the order won't execute unless the price reaches $52 or higher. This protects you from selling at a price you don't want, but it also means the sale might never happen if the market moves the other way. Limit orders stay active until you cancel them or they expire (Robinhood's default is to expire at the end of the trading day unless you change it to "Good-Til-Canceled").

For most people selling a small number of shares, a market order is simpler and faster. Limit orders make sense if you're selling a large position and want to control the price, or if you're selling something volatile and want to avoid a bad fill.

Selling partial positions and fractional shares

You don't have to sell everything at once. When you tap "Sell," Robinhood shows you how many shares or coins you own, and you can type in any number less than that. If you own 100 shares, you can sell 30 and keep 70.

Robinhood also lets you own and sell fractional shares — pieces of a share smaller than one whole share. If you own 5.5 shares of a stock, you can sell all 5.5, or just 2.25, or any amount down to $1 worth. This matters because some stocks are expensive (a single share of Berkshire Hathaway costs thousands of dollars), and fractional shares let you own a piece without buying a whole one.

When you sell a fractional share, Robinhood calculates the proceeds based on the current price. If a stock is trading at $100 and you sell 0.5 shares, you get $50 (minus any applicable fees, though Robinhood does not charge commissions on stock or crypto sales).

What happens to your cash after you sell

The money from your sale lands in your Robinhood account as cash, separate from your invested balance. You can see this cash in your account overview. From there, you have three choices: leave it sitting in your account, buy something else with it, or transfer it to your bank.

Robinhood does not pay interest on cash sitting in your account (though some brokers do). If you want to move the money to your bank, go to the "Account" tab, select "Transfers," and choose "Transfer to Your Bank." Robinhood will ask which bank account you want it to go to — you must have already linked one. The transfer usually takes one to three business days, depending on your bank.

If you're using a Robinhood Gold margin account, you can borrow against unsettled cash (cash from stock sales that haven't finished settling yet). This is an advanced feature and comes with interest charges and risk — most people should avoid it unless they understand margin accounts.

Taxes and what Robinhood reports

When you sell at a profit, you owe capital gains tax on the difference between what you paid and what you sold it for. Robinhood tracks this for you and sends you a tax form (Form 1099-B) at the end of the year showing all your sales. You'll need this form to file your taxes correctly.

Robinhood distinguishes between short-term gains (you held the asset less than a year) and long-term gains (you held it a year or longer). Long-term gains usually get a lower tax rate. Robinhood's tax documents will show which sales fall into which category, but you are responsible for reporting them correctly to the IRS.

If you sell at a loss, you can use that loss to offset gains elsewhere, which can lower your tax bill. Keep records of all your sales — Robinhood stores them in your account history, but it's wise to download or screenshot your own copies.

Selling during market disruptions and after-hours trading

During normal market hours, selling is straightforward. But if the market is closed or moving unusually, things can get complicated. Robinhood offers after-hours trading for stocks from 4 p.m. to 8 p.m. Eastern on weekdays. After-hours prices can be very different from the closing price, and there are fewer buyers and sellers, so your order might not fill at all or might fill at a much worse price than you expected.

If you place a sell order after 8 p.m., it queues until the market opens the next morning. You can't control when it executes — it will go out as soon as the market opens, which means you might get a very different price than you see the night before.

Cryptocurrency trades 24/7, so there is no "after-hours" for crypto. Prices move around the clock, and you can sell anytime. However, prices can swing wildly at night when fewer people are trading.

Common reasons a sell order might not go through

If you try to sell and get an error, the most common reasons are: the market is closed (for stocks), you don't actually own the shares or coins you're trying to sell, the amount you're trying to sell is too small (some brokers have minimums, though Robinhood's are very low), or your limit order price is too far from the current market price.

Another reason is a trading halt. If a stock is halted by the SEC or an exchange, nobody can buy or sell it until the halt lifts. Robinhood will show a message explaining this. Halts usually last a few hours but can last longer.

If you're selling crypto and the order doesn't go through, it's usually because Robinhood's system is overloaded during a price spike. Try again in a few minutes. If you're selling a stock and you get a message about "insufficient shares," check that you actually own what you think you own — sometimes a purchase hasn't settled yet, or you may have already sold it.

Frequently Asked Questions

Can I sell a stock I just bought?

Yes. Robinhood does not restrict you from selling immediately after buying. However, if you buy and sell the same stock within five business days, you may trigger the "pattern day trader" rule if your account is under $25,000. This rule limits how many day trades you can make. If you're under the threshold and you hit the limit, Robinhood will freeze your account for 90 days.

What's the difference between selling and canceling an order?

Selling executes a transaction — you own the shares, you sell them, and the money goes into your account. Canceling an order means you never completed the sale. If you placed a limit order to sell at $50 but canceled it before it filled, you still own the shares and no money changes hands.

Do I pay a fee to sell on Robinhood?

No. Robinhood does not charge commissions on stock or cryptocurrency sales. However, you may owe capital gains tax on any profit, and if you use margin (borrowed money), you'll pay interest on the borrowed amount.

Can I sell crypto on Robinhood the same way as stocks?

Yes, the process is identical — tap the holding, select "Sell," enter the amount, and submit. The main difference is that crypto trades 24/7, so your order executes immediately any time of day, whereas stocks only trade during market hours.

What if I sell but then change my mind?

Once an order is submitted and filled, it cannot be undone. You would have to buy the shares or coins back at the new market price. If you placed a limit order that hasn't filled yet, you can cancel it before it executes.