How to close a position on Robinhood

To close a position on Robinhood, open the app or website, find the stock or options contract in your portfolio, tap or click it, then tap the sell button (for stocks) or close button (for options). You will see the current market price, the number of shares or contracts you own, and the total proceeds you will receive. Confirm the order, and Robinhood will send it to the market when ready during market hours.

The exact steps differ slightly between stocks and options, and the order may not fill at the price you see on screen if the market moves while your order is being processed. Market hours are 9:30 a.m. to 4 p.m. Eastern time on weekdays when U.S. stock exchanges are open. If you place an order outside those hours, it will wait until the market opens.

You do not need to do anything special to close a position — you are straightforward selling what you own. The proceeds land in your Robinhood cash balance, and you can withdraw them or use them to buy something else.

Key Takeaways

  • Closing a stock position means selling all or part of your shares; closing an options position means selling the contract back to the market.
  • You can close a position during market hours (9:30 a.m. to 4 p.m. Eastern, weekdays) by tapping the stock or contract, then tapping sell or close.
  • The price you receive may differ from the price shown when you placed the order if the market moved while your order was processing.
  • Proceeds from a closed position appear in your cash balance and can be withdrawn or reinvested when ready.
  • If you sell a stock within 30 days of buying it at a loss, the loss may be disallowed under the wash-sale rule, which affects your taxes.

Closing a stock position step by step

Open Robinhood and go to your portfolio. Scroll to find the stock you want to sell. Tap the stock name or ticker symbol. You will see a detail page showing your cost basis, current value, and gain or loss.

At the bottom of the screen, tap the sell button (usually a green button with a down arrow or the word "Sell"). Robinhood will show you the current bid price — the price a buyer is willing to pay right now. Enter the number of shares you want to sell, or tap "All" to sell your entire position. Review the total dollar amount you will receive, then tap "Submit" or "Sell Now" to send the order to the market.

Your order will fill during market hours. If you placed it during market hours, it usually fills within seconds. If you placed it after hours, it will wait until 9:30 a.m. the next market day. Once filled, the cash appears in your account and is available to withdraw or reinvest.

Closing an options position step by step

Options contracts expire on a set date, but you can close the position before expiration by selling the contract back. Go to your portfolio, find the options contract (it will show the expiration date and strike price), and tap it.

Tap the close button. Robinhood will show the current bid price for that contract. Options prices move quickly and can swing significantly, so the price you see may not be the price you get. Enter the number of contracts you want to close (usually 1 unless you own multiples), review the total proceeds, and tap "Submit" or "Close Now".

Once your order fills, the contract is closed and the proceeds appear in your cash balance. If the contract is deep out of the money (meaning it has almost no value), you may not be able to close it because no one is willing to buy it. In that case, you can let it expire worthless on the expiration date, and it will automatically close with zero value.

What happens to your cash after you close a position

When you sell a stock or close an options contract, the proceeds go into your Robinhood cash balance. This is the money available to spend. You can withdraw it to your linked bank account, which usually takes one to three business days. You can also use it to buy other stocks or options when ready.

If you are using a margin account (borrowed money), closing a position reduces your margin debt and frees up buying power. If you are using a standard cash account, the cash is straightforward added to your balance.

Understanding the wash-sale rule when closing at a loss

If you sell a stock at a loss, the Internal Revenue Service has a rule called the wash-sale rule that can affect your taxes. If you sell a stock at a loss and then buy the same stock (or a substantially identical one) within 30 days before or after the sale, the loss is disallowed for tax purposes. The loss is added to the cost basis of the new shares instead.

This rule applies to stocks, not options. It also does not prevent you from selling — it only affects how you report the loss on your tax return. If you are closing a losing position and plan to buy it back, wait at least 31 days to avoid the wash-sale rule, or buy a similar but not identical stock in the meantime.

Robinhood does not prevent you from triggering a wash sale, and it does not automatically track it. You are responsible for keeping records of your sales and purchases and reporting the rule correctly on your tax return or to a tax professional.

Partial closes and position management

You do not have to close your entire position at once. When you sell, you can enter any number of shares less than your total holding, and Robinhood will close only that portion. The rest stays in your portfolio. This is useful if you want to take some profit while keeping some shares for the long term, or if you want to sell gradually as the price rises.

Each partial sale is a separate transaction for tax purposes. If you bought shares at different times or prices, Robinhood uses the first-in-first-out (FIFO) method by default, meaning it sells the oldest shares first. You cannot change this method in Robinhood, so if you need to use a different method for tax reasons, you will need to track it yourself or work with a tax professional.

Why an order might not fill at the price you see

When you place a sell order, the price shown on your screen is the current bid price — the highest price someone is willing to pay at that exact moment. By the time your order reaches the market, that price may have changed. If the stock price drops, your order may fill at a lower price. If the stock price rises, your order may fill at a higher price or may not fill at all if you set a limit price below the current market.

For stocks with high trading volume (like Apple or Tesla), prices move slowly and orders usually fill at or near the price you see. For stocks with low trading volume, prices can swing more dramatically, and your order may fill at a noticeably different price.

You can set a limit price to control the minimum price you will accept. Instead of tapping "Sell Now," tap "Limit Order" and enter the lowest price you are willing to accept. Your order will wait until the stock reaches that price, or it will expire at the end of the day if the price never reaches it.

Frequently Asked Questions

Can I close a position after market hours?

You can place a sell order after market hours, but it will not fill until the market opens the next day. Robinhood offers extended-hours trading (4 p.m. to 8 p.m. Eastern and 4 a.m. to 9:30 a.m. Eastern) for stocks, but not for options. Extended-hours trading has wider bid-ask spreads, meaning you may get a worse price than during regular hours.

What if I sell a stock and when ready want to buy it back?

You can buy it back when ready, but if you sold at a loss, the wash-sale rule will disallow that loss for tax purposes. Wait at least 31 days after the sale to buy the same stock back, or buy a different but similar stock in the meantime to avoid the rule.

Do I pay a commission to close a position on Robinhood?

No. Robinhood charges no commission for buying or selling stocks or options. You only pay the bid-ask spread, which is the difference between the price you sell at and the price a buyer would pay. This spread varies by stock and market conditions.

What happens if I close an options position before expiration?

The contract is sold back to the market at the current price, and you receive the proceeds. You no longer own the contract and have no obligation to buy or sell the underlying stock. If you let the contract expire instead, it will automatically close on the expiration date based on whether it is in or out of the money.

Can I close a position if the market is closed?

You can place the order, but it will not fill until the market opens. For stocks, you can use extended-hours trading to close during pre-market (4 a.m. to 9:30 a.m.) or after-hours (4 p.m. to 8 p.m.) sessions, though prices may be less favorable. Options can only be closed during regular market hours.