How to sell stock on Robinhood

To sell stock on Robinhood, open the app or website, find the stock in your portfolio, tap or click the sell button, enter the number of shares you want to sell, choose your order type (market or limit), and confirm. The sale executes during market hours — typically 9:30 a.m. to 4 p.m. Eastern Time on weekdays. Cash from the sale lands in your Robinhood account immediately, but you cannot withdraw it for two business days due to settlement rules set by the Securities and Exchange Commission.

The entire process takes less than a minute once you have decided which stock to sell and how many shares. Robinhood charges no commission on stock sales, so you keep all the proceeds minus any losses from the price you paid.

Key Takeaways

  • Market orders sell your shares at the current price right away, while limit orders wait until the price reaches a number you set.
  • Cash from a sale appears in your account instantly but cannot be withdrawn for two business days.
  • You can only sell shares you actually own; selling shares you do not own (short selling) requires a different process and a margin account.
  • Robinhood charges no commission, but you may owe capital gains tax on any profit when you file your taxes.

Market orders versus limit orders

A market order sells your shares at whatever price the stock is trading at the moment your order reaches the market. This happens almost instantly during trading hours. Use a market order when you want to sell right away and do not care about getting the absolute best price. The downside is that the price you see on screen may not be the price you actually get — it can shift by a few cents or more in fast-moving stocks.

A limit order lets you name the lowest price you will accept. Your order sits in the queue until the stock hits that price or higher, then sells automatically. If the stock never reaches your price, the order never fills and your shares stay in your account. Limit orders are useful when you want to wait for a better price or when you are selling a stock that does not trade very often. The tradeoff is that you might not sell at all if the price moves the wrong direction.

What happens to your money after you sell

The moment your sale completes, the cash appears in your Robinhood account as buying power. You can use this money to buy other stocks immediately. However, you cannot withdraw the cash to your bank account for two business days. This two-day window is called the settlement period, and it is a rule enforced by the SEC and your brokerage, not something Robinhood created.

If you try to withdraw before settlement is complete, Robinhood will reject the request. The two-day clock starts the day after you sell. If you sell on a Monday, the cash settles on Wednesday and you can withdraw on Thursday. If you sell on a Friday, settlement happens on Monday, and you can withdraw on Tuesday.

Selling fractional shares

Robinhood lets you buy and sell fractional shares — meaning you can own 0.5 shares or 2.3 shares of a stock, not just whole numbers. When you sell, you can enter any amount, including decimals. This is useful if you own a fractional share from a dividend reinvestment or from buying a small dollar amount of an expensive stock.

To sell a fractional share, follow the same steps as selling whole shares: tap the stock, select sell, and enter the exact number of shares you want to move. Robinhood will calculate the proceeds based on the current price and your order type.

Tax reporting after you sell

When you sell a stock for more than you paid for it, you have a capital gain. When you sell for less, you have a capital loss. You owe tax on gains, and losses can reduce the tax you owe on gains. Robinhood sends you a tax document called a 1099-B each January for the previous year, listing every sale you made.

The tax rate depends on how long you held the stock. If you held it for one year or less, the gain is taxed as ordinary income at your regular tax rate. If you held it for more than one year, it is taxed at the lower long-term capital gains rate. You report this information on your tax return when you file. Robinhood does not withhold taxes automatically, so you are responsible for setting aside money to pay what you owe.

Selling during extended hours

Robinhood offers extended-hours trading before and after the regular market closes. Pre-market trading runs from 4 a.m. to 9:30 a.m. Eastern Time, and after-hours trading runs from 4 p.m. to 8 p.m. Eastern Time. You can sell during these windows, but prices are often wider apart (the bid-ask spread is larger), and fewer buyers and sellers are active, so your order may not fill or may fill at a worse price than during regular hours.

To sell during extended hours, open the stock, tap sell, and look for an option to choose your time window. Not all stocks trade during extended hours — Robinhood will tell you if a stock is not available. For most people, selling during regular market hours is simpler and more reliable.

What to do if your sell order does not go through

If you placed a limit order and the stock never reached your price, the order simply stays open until you cancel it or the market closes. At the end of each trading day, any unfilled limit orders expire and disappear from your account. Your shares remain in your portfolio. You can place a new order the next day at a different price or switch to a market order.

If you placed a market order and it did not fill, this is rare but can happen if the stock is halted or if there is a technical issue. Check your order history in the app to see the status. If the order shows as cancelled or rejected, your shares are still yours and you can try selling again.

Frequently Asked Questions

Can I sell stock before the market opens?

Yes, you can place a sell order during pre-market hours (4 a.m. to 9:30 a.m. Eastern) using extended-hours trading. However, prices are less stable and orders fill less reliably. Most people wait for the regular market to open at 9:30 a.m. for a more predictable sale.

What if I sell a stock and then want to buy it back right away?

You can buy it back immediately using your buying power. However, the cash from your sale will not be available to withdraw for two business days. If you buy and sell the same stock within five business days, you may trigger the pattern day trader rule, which requires a minimum account balance of $25,000.

Do I have to pay a fee to sell on Robinhood?

No. Robinhood charges no commission on stock sales. You keep all the proceeds from your sale, minus any loss in the stock price since you bought it. You may owe capital gains tax when you file your taxes, but that is separate from Robinhood's fees.

Can I cancel a sell order after I place it?

Yes, as long as the order has not filled yet. Open the order in your app or website and select cancel. If the order has already executed, you cannot cancel it, but you can buy the shares back if you want to reverse the sale.

What happens if I sell stock in a retirement account like an IRA?

Robinhood does not currently offer retirement accounts. If you hold stocks in a Robinhood regular taxable account, the capital gains tax rules described above apply. To sell stocks in an IRA or other retirement account, you would need to use a different brokerage that offers those account types.