How to set a stop loss order on Robinhood
A stop loss order is an instruction you place on a stock or other security that automatically sells your position if the price drops to a level you choose. On Robinhood, you set this up through the order screen when you are viewing the stock you own. You pick the trigger price (the price at which the sale happens), choose how many shares to sell, and confirm the order. The order sits inactive until the stock hits that price, at which point Robinhood sends a sell order to the market.
Stop loss orders on Robinhood are not may provide to execute at your exact trigger price, especially in fast-moving markets. Once the stock price touches or falls below your stop price, Robinhood converts the order to a market sell order, which means it sells at whatever price is available at that moment. This is an important distinction: your stop price is the trigger, not the sale price.
Key Takeaways
- Stop loss orders on Robinhood trigger automatically when a stock price hits the level you set, but they sell at market price, not necessarily at your stop price.
- You set a stop loss by opening the stock detail page, tapping the order button, selecting "Sell," and entering your stop price in the order form.
- Stop loss orders remain active until the trigger price is hit, the order is cancelled, or the market closes for the day on certain order types.
- Robinhood charges no commission on stock trades, but your stop loss order can still result in a loss if the stock gaps down past your trigger price.
Where to find the stop loss option in the Robinhood app
Open the Robinhood app and navigate to the stock you already own. Tap the stock name or chart to open the detail page. At the bottom of the screen, you will see a row of buttons including "Buy," "Sell," and sometimes "Trade." Tap "Sell" to open the order screen.
Once the sell order screen opens, look for the order type selector near the top. By default, it shows "Market" or "Limit." Tap this field to reveal a menu of order types. Select "Stop Loss" from the list. The screen will then show a field labeled "Stop Price" where you enter the price at which you want the sale to trigger.
Entering your stop price and share quantity
After you select "Stop Loss," the order form displays two key fields: "Stop Price" and "Shares." The stop price is the trigger — the price at which your order converts to a market sell. Enter the dollar amount below your current stock price. For example, if you own a stock trading at $50 and want to limit losses, you might set a stop price of $45.
Next, specify how many shares to sell. Robinhood defaults to your full position, but you can reduce this number if you want to sell only part of your holdings. After you enter both values, review the order summary. Robinhood shows you the stop price, the number of shares, and a note that the order will execute at market price once triggered. Tap "Submit Order" or "Confirm" to place the stop loss.
What happens after you place a stop loss order
Once submitted, your stop loss order becomes active and Robinhood monitors the stock price during market hours. If the price touches or falls below your stop price, the order automatically converts to a market sell order and executes. You will receive a notification (if you have notifications enabled) confirming the sale and the price at which it filled.
If the stock price never reaches your stop price, the order remains open. Most stop loss orders on Robinhood stay active until you cancel them or the market closes. Some order types expire at the end of the trading day, so check the order details to confirm whether yours is a "day order" (expires at market close) or a "good-till-cancelled" order (remains active until you cancel it or it executes).
Cancelling or modifying a stop loss order
To cancel a stop loss order before it executes, open the Robinhood app and navigate to the "Orders" or "Activity" tab. Find the pending stop loss order in the list and tap it. You will see an option to "Cancel Order." Tap it, and Robinhood removes the order immediately. The stock will no longer be monitored for that trigger price.
Robinhood does not allow you to modify a stop loss order directly. If you want to change the stop price or share quantity, you must cancel the existing order and place a new one. This means there is a brief window between cancellation and the new order being placed when your position is unprotected. Place the new order as soon as possible if you want continuous protection.
Risks and limitations of stop loss orders on Robinhood
Stop loss orders are not a may provide against loss. In a fast-moving market, the stock price can gap down past your stop price without triggering at that exact level. Your order will still execute, but at a lower price than you intended. This is called slippage and is most common during market opens, earnings announcements, or other high-volatility events.
Another limitation is that stop loss orders do not work during after-hours trading on Robinhood. If a stock drops sharply after the market closes, your stop loss order will not trigger until the next market open. By that time, the price may be significantly lower than your stop price. Additionally, if you place a stop loss order and then sell the stock through another method, you must remember to cancel the stop loss order to avoid confusion.
Frequently Asked Questions
Can I set a stop loss order on fractional shares?
Yes, Robinhood allows stop loss orders on fractional shares. You can enter a fractional quantity in the "Shares" field when setting up the order. The stop price and execution process work the same way as with whole shares.
What is the difference between a stop loss and a stop limit order?
A stop loss order converts to a market sell once triggered, so it will execute but at an unpredictable price. A stop limit order adds a second price floor — it only sells if the price is at or above a limit price you set. Stop limit orders may not execute at all if the price falls below your limit before the order can fill.
Does Robinhood charge a fee for stop loss orders?
No, Robinhood charges no commission or fee for placing or executing a stop loss order. You pay no cost to set up the order or when it triggers and sells your shares.
What happens to my stop loss order if the market is closed?
Stop loss orders do not monitor price during after-hours trading or on weekends. If you have a day order, it expires at market close. If you have a good-till-cancelled order, it remains active and will trigger the next time the market is open and the price hits your stop level.
Can I place a stop loss order on a stock I do not own yet?
No, you can only place a stop loss order on shares you currently own in your Robinhood account. To set up a stop loss for a stock you plan to buy, you must purchase the shares first, then place the stop loss order.