How to set a stop loss order on Robinhood Mobile
A stop loss order is an instruction to sell a stock automatically when its price drops to a level you choose. On Robinhood Mobile, you set this up through the same order screen where you place regular sell orders, but you select "stop loss" as the order type instead of "market" or "limit".
The process takes about two minutes. You open the stock, tap the sell button, choose your stop price (the price at which the sale triggers), review the order, and submit it. Robinhood then watches the price and sells your shares if the stock reaches that level during market hours or, depending on your account settings, during extended hours.
Stop loss orders do not may provide a sale at your chosen price — if the stock drops fast, it may sell below that level. They also do not protect you if the market is closed when bad news hits. But they do remove the need to watch a stock constantly and can limit losses if you cannot monitor your holdings.
Key Takeaways
- Stop loss orders on Robinhood Mobile are set from the sell screen by choosing "stop loss" as the order type and entering your stop price.
- Your shares sell automatically if the price drops to your stop price, but the actual sale price may be lower if the stock is falling fast.
- Stop loss orders only work during market hours unless you have enabled extended-hours trading in your account settings.
- You can cancel a stop loss order at any time before it triggers by opening the stock and tapping the pending order.
Step-by-step: placing a stop loss order
Open Robinhood Mobile and find the stock you own. Tap the stock name or chart to open its detail page. At the bottom of the screen, you will see a row of buttons; tap the one that says "Sell" (not "Trade" — tap "Sell" directly).
The sell order screen opens. At the top, you will see order type options: "Market", "Limit", and "Stop Loss". Tap "Stop Loss". The screen now shows a field labeled "Stop Price" — this is the price at which your sale will trigger. Enter the price you want. For example, if you own a stock trading at $50 and want to sell if it drops to $45, enter 45.
Below the stop price field, you will see the number of shares you are selling (usually all of them, but you can change this). Review the order summary, which shows the stock name, number of shares, and stop price. Tap "Review Order" or the checkmark button. On the confirmation screen, tap "Submit Order" or "Place Order". Your stop loss order is now active.
What happens when your stop price is reached
When the stock price touches or falls below your stop price during market hours, Robinhood converts your stop loss order into a market sell order automatically. A market order sells at the best available price at that moment. If the stock is dropping quickly, that price may be noticeably lower than your stop price.
For example, if your stop price is $45 but the stock gaps down to $42 in seconds, your shares may sell at $42 or lower. This is called slippage, and it is a real risk of stop loss orders, especially with stocks that move fast or have low trading volume.
Robinhood will send you a notification when your order fills. You can see the actual sale price in your order history by tapping the menu icon (three horizontal lines) and selecting "Account" or "History".
Extended-hours trading and stop loss orders
By default, stop loss orders on Robinhood Mobile only work during regular market hours (9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday). If a stock price drops below your stop price during pre-market or after-hours trading, your order will not trigger until the regular market opens.
If you want your stop loss to work during extended hours, you must enable this in your account settings. Tap the menu icon, go to "Settings", then "Account", then look for "Extended Hours" or "Pre-Market and After-Hours Trading". Toggle this on. Once enabled, your stop loss orders will trigger during pre-market (4 a.m. to 9:30 a.m.) and after-hours (4 p.m. to 8 p.m.) sessions as well.
Extended-hours trading carries extra risk: fewer traders are active, prices can be more volatile, and bid-ask spreads (the gap between buy and sell prices) are wider. Your stop loss may fill at a much worse price during these times.
Canceling or changing a stop loss order
You can cancel a stop loss order at any time before it triggers. Open the stock detail page, scroll down to the "Orders" section, and you will see your pending stop loss order listed. Tap it, then tap "Cancel Order". The order is removed immediately, and your shares remain in your account.
You cannot edit a stop loss order once it is placed — you must cancel it and create a new one with the new stop price. This means if you want to move your stop price higher or lower, you will cancel the old order, then go through the sell screen again to place a new one.
Common mistakes and how to avoid them
The most common mistake is setting your stop price too close to the current stock price. If a stock is at $50 and you set a stop at $49, any small dip will trigger a sale. You may sell at the worst moment. Set your stop price at a level that reflects your actual risk tolerance — how much you are willing to lose on this stock.
Another mistake is forgetting that stop loss orders become market orders. If you want to may provide a minimum sale price, use a stop limit order instead (if Robinhood offers it for your stock). A stop limit order triggers at your stop price but then sells only at or above a limit price you set. However, if the price falls below your limit, the order may not fill at all.
A third mistake is assuming your stop loss protects you overnight or over weekends. If a stock crashes during after-hours trading or when the market is closed, your stop loss will not trigger until the market reopens — and by then the price may be far below your stop.
Frequently Asked Questions
Can I set a stop loss order on a stock I do not own yet?
No. Stop loss orders only work on shares you already own. If you want to sell a stock you plan to buy, you would need to buy it first, then set the stop loss. Some brokers offer "short selling" (selling stock you do not own), but Robinhood's standard account does not support this.
What is the difference between a stop loss and a stop limit order?
A stop loss becomes a market order and sells at the best available price. A stop limit order becomes a limit order and sells only at your chosen limit price or better. Stop limit orders protect you from selling too low but may not fill if the price drops below your limit. Robinhood may not offer stop limit orders on all stocks.
Will my stop loss order work if I close the Robinhood app?
Yes. Once your stop loss order is submitted and active, Robinhood's servers monitor the price continuously. You do not need to keep the app open. You will receive a notification when the order fills.
Can I set multiple stop loss orders on the same stock?
No. Robinhood allows only one active sell order per stock at a time. If you want to sell part of your position at one price and the rest at another, you would need to use a different broker or place the orders one at a time as the first one fills.
What happens to my stop loss order if the stock splits?
Robinhood adjusts your stop price automatically to account for stock splits. If you own 100 shares at a $50 stop and the stock splits 2-for-1, your order becomes 200 shares at a $25 stop. The dollar amount of your stop remains roughly the same.