How to place a trade on Robinhood

To place a trade on Robinhood, open the app or website, search for the stock or cryptocurrency you want to buy or sell, and tap or click the ticker symbol. On the detail page, you'll see a green "Buy" button or red "Sell" button depending on what you want to do. Tap the button, enter the number of shares or the dollar amount you want to trade, choose between a market order (executes immediately at the current price) or a limit order (executes only at a price you set), and confirm.

The entire process takes less than a minute once you've found the security. Robinhood does not charge commission on stock or options trades, which is why the process feels streamlined — there's no fee screen to navigate. Your order will show in your "Positions" tab once it fills, and you can track it in real time.

Key Takeaways

  • Market orders execute immediately at whatever price the market is offering right now, while limit orders only fill if the price reaches the exact level you set.
  • You can trade in dollars or by share count — entering "$500" and entering "10 shares" are both valid ways to size your order.
  • Robinhood settles stock trades in two business days, meaning the cash or shares don't fully transfer until then, even though your order fills instantly.
  • Selling a stock you own is the same process as buying, except you tap the red "Sell" button and confirm you want to reduce your position.

Market orders versus limit orders

A market order buys or sells at the best available price right now. If you're buying Apple stock and the current ask price is $150, your order fills at or near $150 immediately. The trade happens fast, but you don't control the exact price — it could be $150.05 or $150.10 depending on how many shares are available at each price level. Market orders are useful when you want to get in or out quickly and don't care about small price differences.

A limit order lets you set a maximum price you'll pay (when buying) or a minimum price you'll accept (when selling). If you set a buy limit at $148 for Apple, your order only fills if the stock drops to $148 or lower. The trade might not happen today, or it might not happen at all if the price never reaches your limit. Limit orders protect you from overpaying, but they also mean you might miss the trade entirely if the price moves the wrong direction.

For most beginning traders, market orders are simpler because they may provide the trade will happen. Limit orders make sense when you're patient and want to control your entry or exit price precisely.

Understanding settlement and when your money is available

When you sell a stock on Robinhood, the cash doesn't land in your account immediately. Stock trades settle in two business days, meaning the money becomes available to withdraw or reinvest on the second business day after you sell. If you sell on a Monday, the cash settles on Wednesday. If you sell on a Friday, it settles on Tuesday (because the market is closed on weekends).

During those two days, the cash shows in your account as "unsettled" — you can see it and use it to buy other stocks, but you cannot withdraw it to your bank account. This is a rule set by the Securities and Exchange Commission, not by Robinhood. Cryptocurrency trades settle instantly, which is one reason some traders prefer them, though crypto is also far more volatile.

If you're a frequent trader, this settlement delay matters because it affects how much buying power you have. Robinhood does offer margin accounts that let you trade with unsettled cash, but that comes with fees and risk if the market moves against you.

Selling a stock you already own

Selling works the same way as buying, except you start by tapping the red "Sell" button on the stock's detail page. Enter how many shares you want to sell or the dollar amount, choose market or limit order, and confirm. You can only sell shares you actually own — Robinhood does not allow short selling (betting that a stock will go down) on its basic account.

If you own 50 shares of a stock and you sell 30, you'll still own 20. Your "Positions" tab updates instantly to show 20 shares remaining. The proceeds from the sale appear as unsettled cash for two business days, then become available to withdraw or trade with.

What happens if your order doesn't fill

If you place a limit order and the price never reaches your limit, the order stays open until you cancel it or until the market closes on the day you placed it. Robinhood does not carry limit orders over to the next trading day by default — they expire at the end of the day. If you want the order to stay open for multiple days, you can set it as a "good-til-canceled" order, though Robinhood will eventually expire it after 90 days.

You can cancel any open order by going to your "Orders" tab, finding the order, and tapping "Cancel." There's no penalty for canceling, and it happens instantly. If you realize you set your limit price too low or too high, canceling and placing a new order is the normal move.

Trading during market hours versus after-hours

The stock market officially opens at 9:30 a.m. Eastern time and closes at 4 p.m. Eastern time, Monday through Friday. During these hours, you can trade most stocks with tight bid-ask spreads (the difference between the buy price and sell price), meaning your order will fill close to the price you see on screen.

Robinhood also offers extended-hours trading, which lets you trade from 4 p.m. to 8 p.m. Eastern (after-hours) and from 7 a.m. to 9:30 a.m. Eastern (pre-market). During these windows, fewer traders are active, so spreads widen and prices can move sharply on small trades. A stock might show $100 at market close but trade at $102 in after-hours because only a handful of buyers and sellers are active. Most beginning traders should stick to regular market hours until they're comfortable with how prices move.

Frequently Asked Questions

Can I buy a fractional share on Robinhood?

Yes. You can enter a dollar amount instead of a share count, and Robinhood will buy whatever fraction of a share that represents. If you enter "$50" for a stock trading at $100, you'll own 0.5 shares. This makes it possible to own expensive stocks like Berkshire Hathaway without needing thousands of dollars.

What's the difference between a bid and an ask price?

The bid is the highest price someone is willing to pay right now; the ask is the lowest price someone is willing to sell at. When you buy, you pay the ask. When you sell, you receive the bid. The gap between them is the spread, and it's how market makers make money. Wider spreads mean you'll pay more to buy or receive less when you sell.

Do I pay taxes on trades I make on Robinhood?

Yes. If you sell a stock for more than you paid for it, you owe capital gains tax. Short-term gains (stocks held less than a year) are taxed as ordinary income. Long-term gains (stocks held over a year) get a lower tax rate. Robinhood sends you a tax form at the end of the year, but you're responsible for reporting the gains to the IRS.

What happens if I don't have enough buying power for a trade?

Robinhood will reject the order and show an error message saying you don't have enough cash or buying power. You'll need to deposit more money, sell another position, or wait for a previous sale to settle before you can place the trade.

Can I set a stop-loss order on Robinhood?

Yes. A stop-loss order automatically sells your stock if the price drops to a level you set, protecting you from larger losses. You place it the same way as a limit order — tap "Sell," enter the stop price, and confirm. If the stock hits that price, the order converts to a market order and sells immediately, though the actual price you receive might be lower than your stop price in a fast-moving market.