Selling a stock or crypto position on Robinhood

To sell a stock or cryptocurrency on Robinhood, open the app, find the position you own in your portfolio, tap it, and then tap the sell button. You will see the number of shares or coins you own, set how many you want to sell, choose a market order (sells at the current price when ready) or a limit order (sells only if the price reaches a number you set), and confirm. The sale executes during market hours for stocks or 24/7 for crypto, and the cash lands in your Robinhood account within one to three business days.

The process is the same whether you are selling a single share or your entire position. Robinhood does not charge a commission on stock or crypto sales. You will owe taxes on any profit you made between the purchase price and the sale price, and Robinhood reports those gains to the IRS on Form 8949 at the end of the year.

Key Takeaways

  • Tap the position in your portfolio, then tap sell, set the quantity, and choose market or limit order to complete a sale in seconds.
  • Market orders sell when ready at the current price; limit orders wait until the price hits your target and may not fill at all.
  • Stock sales settle in one to three business days, meaning the cash is not available to withdraw or reinvest until then.
  • You will owe capital gains tax on any profit, and Robinhood reports the transaction to the IRS automatically.
  • Robinhood charges no commission on sales, but the bid-ask spread (the gap between buy and sell prices) is a real cost you pay.

Market orders versus limit orders

A market order sells your shares or coins at whatever price the market is offering right now. If you own 10 shares of a stock trading at $50, a market order sells all 10 at $50 (or very close to it) within seconds. Market orders almost always fill, meaning the sale goes through. The downside is that you do not control the exact price — if the stock is moving fast, you might get $49.95 instead of $50.

A limit order lets you set a minimum price. You tell Robinhood "sell my 10 shares only if the price hits $52 or higher." The order sits in the market waiting. If the stock climbs to $52, the sale happens automatically. If it never reaches $52, the order expires unfilled and you still own the shares. Limit orders are useful when you want to lock in a target profit or avoid selling at a loss, but they carry the risk that the price never reaches your target and you miss the window to sell.

For most people, a market order is the right choice when you have decided to sell. Limit orders are better if you are willing to wait for a specific price or if you are selling a large position and want to avoid moving the market against yourself.

Understanding settlement and when your cash is available

When you sell a stock on Robinhood, the transaction settles in T+2, which means two business days after the sale. If you sell on a Monday, the cash lands in your account on Wednesday. Weekends and market holidays do not count as business days, so a Friday sale settles on Tuesday. During those two days, the cash is not available to withdraw or use to buy other stocks — Robinhood shows it as "unsettled" in your account.

Cryptocurrency sales settle much faster. When you sell crypto on Robinhood, the cash is usually available within minutes or hours, not days. This is because crypto trades 24/7 and does not follow the same settlement rules as the stock market.

If you try to buy a stock with unsettled cash and then sell it before the original sale settles, Robinhood may flag you for a "good faith violation." Three violations in 12 months can freeze your account from buying for 90 days. To avoid this, wait for your cash to settle before using it to buy again, or keep enough settled cash on hand to cover your trades.

Partial sales and selling specific lots

You do not have to sell your entire position at once. When you tap sell on Robinhood, you can enter any number of shares or coins you own, and Robinhood will sell only that amount. If you own 100 shares, you can sell 30 and keep 70. This is useful if you want to take some profit while staying invested in the stock.

Robinhood does not let you choose which specific shares you sell (for example, the ones you bought first or the ones you bought at the lowest price). Instead, Robinhood uses a default method to decide which shares count as sold for tax purposes. For most accounts, this is "first in, first out" (FIFO), meaning the oldest shares are treated as sold first. This matters because it affects how much tax you owe. If you bought shares at $30 five years ago and again at $60 last month, selling 10 shares under FIFO means the $30 shares are treated as sold, which creates a larger gain and a larger tax bill. If you need to control which shares are sold for tax reasons, you should contact Robinhood support or consult a tax professional, because the app does not offer a way to override the default method.

Bid-ask spread and why your sale price might differ from the quoted price

When you see a stock quoted at $50 on Robinhood, that is usually the midpoint between what buyers are willing to pay and what sellers are willing to accept. The bid is the highest price a buyer will pay (usually slightly lower, like $49.99). The ask is the lowest price a seller will accept (usually slightly higher, like $50.01). When you sell, you get the bid price, not the midpoint. This gap is called the bid-ask spread, and it is a real cost.

For large, heavily traded stocks like Apple or Microsoft, the spread is tiny — often just a penny. For smaller or less liquid stocks, the spread can be 10 cents, 50 cents, or more per share. On a 100-share sale, a 50-cent spread costs you $50. Robinhood does not charge a commission, but the spread is how market makers and brokers make money on every trade.

You cannot avoid the spread entirely, but you can minimize it by selling during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) when more people are trading and spreads are tighter. Selling during pre-market or after-hours trading, when fewer people are active, often means wider spreads and worse prices.

Taxes and reporting when you sell

When you sell a stock or crypto at a profit, you owe capital gains tax on the difference between what you paid and what you sold it for. If you bought a stock for $40 and sold it for $60, your gain is $20 per share. Robinhood reports all your sales to the IRS on Form 8949 and Schedule D, which are part of your tax return. You cannot avoid reporting the sale — Robinhood sends the same information to the IRS.

The tax rate depends on how long you held the investment. If you held it for one year or less, the gain is short-term capital gains, taxed at your ordinary income tax rate (which can be as high as 37% at the federal level). If you held it for more than one year, the gain is long-term capital gains, taxed at a lower rate (0%, 15%, or 20% at the federal level, depending on your income). This is why holding an investment longer often saves you money on taxes.

Losses also matter. If you sell at a loss, you can use that loss to offset gains from other sales or, in some cases, to reduce your ordinary income. Robinhood tracks your cost basis (the price you paid) automatically, but you should keep your own records in case there is a discrepancy.

Selling during market hours versus after-hours

The stock market is officially open from 9:30 a.m. to 4 p.m. Eastern time on weekdays. Robinhood also lets you trade during pre-market hours (4 a.m. to 9:30 a.m.) and after-hours (4 p.m. to 8 p.m.). Selling during regular market hours is almost always the better choice because more people are trading, prices are more stable, and bid-ask spreads are tighter.

During pre-market and after-hours, fewer traders are active, so spreads widen and prices can swing wildly. A stock might trade at $50 during the day but $48 in after-hours trading. If you sell after-hours, you might get a much worse price than you expected. Unless you have a specific reason to trade outside regular hours, wait until 9:30 a.m. to sell.

Common mistakes when selling on Robinhood

One frequent mistake is using a limit order and forgetting about it. You set a limit order to sell at $60, the stock climbs to $59.99, and then drops back down. The order never fills, and you miss your chance to sell. Always check whether your limit order filled before assuming the sale went through.

Another mistake is selling during after-hours or pre-market trading without realizing the spread will be wider. You see the stock at $50 during the day, decide to sell after-hours, and get $48.50 instead. Check the current bid-ask spread before you confirm a sale, especially outside regular market hours.

A third mistake is not understanding settlement. You sell on Monday, assume the cash is available Tuesday, and buy another stock with it. If the original sale does not settle until Wednesday, you have created a good faith violation. Wait for the settlement date shown in your account before using the cash.

Frequently Asked Questions

How long does it take to sell a stock on Robinhood?

The sale executes within seconds during market hours if you use a market order. The cash settles (becomes available to withdraw or reinvest) in two business days. Crypto sales execute within minutes and the cash is usually available within hours.

Can I sell a fractional share on Robinhood?

Yes. Robinhood lets you sell any amount you own, including fractional shares. If you own 10.5 shares, you can sell all 10.5 or any portion of it. The sale works the same way as selling whole shares.

What happens if I sell at a loss?

You can use the loss to offset capital gains from other sales in the same year, or to reduce your ordinary income by up to $3,000 per year (with unused losses carrying forward to future years). Robinhood reports the loss to the IRS, and you report it on your tax return.

Do I have to pay taxes when ready after I sell?

No. You owe taxes when you file your tax return the following year. Robinhood does not withhold taxes from the sale proceeds. You are responsible for setting aside money to pay the tax bill when it is due.

Can I cancel a sale after I confirm it?

If you used a market order, the sale executes within seconds and cannot be cancelled. If you used a limit order that has not filled yet, you can cancel it by opening the order and tapping cancel. Once a limit order fills, it cannot be reversed.