Selling stocks on E*TRADE: the basic process

To sell stocks on E*TRADE, you log into your account, find the stock in your portfolio, click the sell button, enter how many shares you want to sell, review the order details, and submit. The entire process takes about two minutes once you're logged in. Your shares sell at the market price (or a price you set), and the cash lands in your account within one to three business days, depending on settlement time.

E*TRADE handles the mechanics — matching your order to a buyer, moving the shares out of your name, and crediting your cash. You don't need to contact anyone or fill out forms. The platform walks you through each step and shows you the price before you confirm.

Key Takeaways

  • Log into your E*TRADE account, navigate to your portfolio, and select the stock you want to sell.
  • Choose between a market order (sells when ready at current price) or a limit order (sells only if the price reaches a number you set).
  • Enter the number of shares, review the estimated proceeds, and click confirm to submit your order.
  • Cash from the sale appears in your account within one to three business days after the trade settles.
  • You can cancel an order before it executes, but once it fills, the sale is final.

Step-by-step: selling a stock on E*TRADE

Start by logging into your E*TRADE account on the website or mobile app. Once you're in, go to your portfolio or positions — this shows all the stocks you own. Find the stock you want to sell and click on it or select the sell option next to its name.

E*TRADE will open an order form. You'll see the current market price of the stock. Enter the number of shares you want to sell. If you own 50 shares and want to sell all of them, type 50. If you want to sell only 30, type 30. The form will show you the estimated proceeds — roughly how much cash you'll receive before fees or taxes.

Choose your order type. A market order sells your shares right away at whatever price the market is offering at that moment. A limit order lets you set a minimum price — your shares only sell if the price hits that number or higher. Market orders fill almost when ready during market hours. Limit orders may take hours, days, or never fill if the price never reaches your target.

Review the order summary. Check the number of shares, the order type, and the estimated proceeds. If everything looks right, click the confirm or submit button. E*TRADE will show you a confirmation number. Your order is now in the system.

Market orders versus limit orders

A market order prioritizes speed. It sells your shares at the best available price right now, which is almost always within seconds during regular trading hours (9:30 a.m. to 4 p.m. Eastern Time, Monday through Friday). You know the sale will happen, but you don't know the exact price until after it fills. The price you see on your screen may shift slightly by the time your order executes, especially if the stock is moving fast or trading in low volume.

A limit order prioritizes price. You set the lowest price you're willing to accept, and your shares only sell if the market reaches that price or higher. If a stock is trading at $50 and you set a limit order at $52, your shares won't sell unless the price climbs to $52 or above. This gives you control, but the trade may never happen if the price doesn't reach your target. Limit orders can sit open for days or weeks.

For most people selling a stock they own outright, a market order is simpler. You get the sale done when ready. For stocks you're watching closely or selling in small pieces, a limit order lets you wait for a better price.

When the cash appears in your account

After your order fills, E*TRADE shows the sale in your account right away. But the cash doesn't land in your account when ready. Stock trades in the United States settle on T+2, which means two business days after the trade date. If you sell on a Monday, the cash arrives by Wednesday. If you sell on a Friday, it arrives by Tuesday (skipping the weekend).

During those two days, the shares are moving from your name to the buyer's name, and the money is moving from the buyer to E*TRADE. Once settlement is complete, the cash sits in your account as a cash balance. You can then withdraw it, buy other stocks, or leave it there.

If you sell during after-hours trading (4 p.m. to 8 p.m. Eastern Time), the trade still settles T+2 from the after-hours trade date, not from the next market open.

Canceling or changing a sell order

Before your order fills, you can cancel it. Log into your account, find the pending order (usually under "Orders" or "Activity"), and click cancel. If the order hasn't executed yet, it will disappear from the system and your shares stay in your account. You can then place a new order at a different price or quantity.

Once an order fills — meaning the shares have sold — you cannot undo it. The sale is final. If you sold by mistake or changed your mind, you would need to buy the shares back at the current market price, which may be higher or lower than what you sold them for.

If you placed a limit order and the price never reached your target, the order stays open until you cancel it or until the market closes on the last day you set it to run (usually end of day, unless you set it as a good-till-canceled order).

Taxes and fees when you sell

E*TRADE does not charge a commission to buy or sell stocks. There is no fee deducted from your proceeds. However, the IRS taxes the profit you make. If you bought a stock for $40 and sold it for $60, you owe tax on the $20 gain. The tax rate depends on how long you held the stock. If you held it for less than one year, it's taxed as ordinary income (at your regular tax rate). If you held it for one year or longer, it's taxed at the long-term capital gains rate, which is usually lower.

E*TRADE will send you a tax form (Form 1099-B) at the end of the year showing all your sales. You report this on your tax return. E*TRADE does not withhold taxes from the sale proceeds — the full amount goes into your account, and you pay taxes when you file.

Selling partial positions and fractional shares

You don't have to sell all your shares at once. If you own 100 shares of a stock, you can sell 30 now and 70 later. Each sale is a separate order and settles independently. This is useful if you want to take some profit but keep some shares, or if you're selling gradually over time.

If you own fractional shares — which can happen if you reinvested dividends or bought through a fractional-share program — you can sell those too. E*TRADE lets you sell fractional shares just like whole shares. If you own 50.5 shares, you can sell all 50.5 in one order.

Frequently Asked Questions

What happens if I sell a stock and the price drops the next day?

Once your order fills and settles, the sale is complete. The price after that doesn't affect you — you locked in the price you sold at. If the stock drops, you avoided that loss. If it rises, you may regret selling, but you cannot undo the trade.

Can I sell stocks after market hours on E*TRADE?

Yes. E*TRADE offers after-hours trading from 4 p.m. to 8 p.m. Eastern Time. After-hours prices can be different from regular market prices, and orders may take longer to fill because fewer traders are active. Most people sell during regular market hours for faster, more predictable execution.

Do I have to wait for T+2 settlement before I can use the cash?

E*TRADE may let you use the cash before settlement through a feature called margin or a cash management account, depending on your account type. But the standard rule is that the cash is fully yours after T+2. Check your account settings or contact E*TRADE to see what your account allows.

What if I sell a stock at a loss?

The process is the same — you place a sell order and it executes like any other sale. The difference is tax-related: a loss can offset gains from other sales or reduce your taxable income. E*TRADE reports losses on your 1099-B, and you report them on your tax return.

Can I set a stop-loss order to sell automatically if the price drops?

Yes. A stop-loss order (or stop order) tells E*TRADE to sell your shares if the price falls to a number you set. If you own a stock trading at $50 and set a stop at $45, your shares will sell if the price drops to $45. This is different from a limit order — it triggers a market order once the price hits your stop level. Stop orders are useful for protecting against big losses, but they can also lock in losses during temporary dips.