How to sell stock on Robinhood

To sell stock on Robinhood, open the app or website, find the stock in your portfolio, tap or click the stock name, then tap the sell button. You will see a screen asking how many shares you want to sell and at what price. 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). Review the order, then confirm. The sale usually settles in one to two business days, meaning the cash moves to your Robinhood account but cannot be withdrawn for that period.

The process is the same whether you own one share or hundreds. Robinhood charges no commission on stock sales. The main decision you make is whether to sell all your shares at once or sell only part of your position.

Key Takeaways

  • Market orders sell your shares when ready at whatever price the stock is trading for right now, while limit orders wait until the price reaches a specific number you choose.
  • Robinhood does not charge a commission fee when you sell stock, but the cash from the sale cannot be withdrawn for one to two business days after the sale settles.
  • If you own fractional shares (less than one full share), you can sell them the same way as whole shares.
  • Selling stock may trigger a capital gains tax on your profit, which you will owe when you file your tax return the following year.

Market orders versus limit orders

A market order sells your shares at the best price available right now. If you place a market order during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), your order usually fills within seconds. The price you receive may be slightly different from the price you saw on your screen because stock prices move constantly. Robinhood shows you the estimated price before you confirm, so you can see the range.

A limit order tells Robinhood to sell only if the stock reaches a price you set or higher. If the stock never reaches that price, your order stays open until you cancel it or until the market closes that day (if you set it as a day order). Limit orders are useful if you want to wait for a higher price, but they carry the risk that the stock never reaches your target and you miss the chance to sell.

Most people use market orders when they want to sell when ready and limit orders when they are willing to wait for a specific price.

What happens after you confirm the sale

Once you confirm a sell order, Robinhood sends it to the market. During market hours, most orders fill within minutes. After 4 p.m. Eastern time on weekdays, Robinhood accepts orders but they do not fill until the market opens the next morning at 9:30 a.m.

After your order fills, the sale enters a settlement period that lasts one to two business days. During this time, the cash appears in your Robinhood account and you can use it to buy other stocks, but you cannot withdraw it to your bank account. Once settlement is complete, the cash is fully yours and you can withdraw it whenever you want.

If you sell a stock you have owned for less than one year, the profit counts as a short-term capital gain. If you have owned it for one year or longer, it counts as a long-term capital gain. Long-term gains are usually taxed at a lower rate. Robinhood sends you a tax document at the end of the year showing all your sales and the gains or losses.

Selling fractional shares

Robinhood allows you to own and sell fractional shares — meaning you can own 2.5 shares of a stock instead of only whole numbers. You sell fractional shares the same way you sell whole shares: find the stock, tap sell, enter the number of shares (including the decimal), and confirm.

Fractional shares settle on the same one- to two-business-day timeline as whole shares. The price you receive is based on the current market price of the full share, so if you own 0.5 shares and the stock is trading at $100, you receive $50 (minus any applicable fees or taxes).

Selling during extended hours

Robinhood offers extended-hours trading, which means you can place sell orders before the market opens (4 a.m. to 9:30 a.m. Eastern) or after it closes (4 p.m. to 8 p.m. Eastern). Extended-hours trading has lower volume and wider price swings, so your order may not fill, or it may fill at a very different price than you expected.

To sell during extended hours, open the sell screen, look for the option to change the order type from "regular" to "extended", and place your order. Robinhood will attempt to fill it during the extended session. If it does not fill, the order cancels at the end of the session unless you set it to roll over to the next regular market day.

Taxes and wash sales

When you sell stock for more than you paid for it, you owe capital gains tax on the profit. The amount you owe depends on your income and how long you held the stock. You do not pay this tax when you sell — you pay it when you file your tax return the following year. Robinhood tracks your cost basis (the price you paid) and sends you a Form 1099-B at the end of the year showing all your sales.

A wash sale occurs when 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. If this happens, the IRS does not let you deduct the loss on your tax return that year. Robinhood does not prevent wash sales, so you need to track them yourself or use tax software that flags them.

Common reasons a sell order might not fill

If you place a limit order and the stock never reaches your target price, your order will not fill. You can cancel it at any time by opening the order and tapping cancel.

If you place a market order during extended hours and there are very few buyers, your order might not fill when ready or might fill at a price much worse than you expected. You can cancel an unfilled order and try again during regular market hours when there is more trading volume.

If you try to sell more shares than you own, Robinhood will reject the order. This can happen if you recently bought shares and they have not settled yet — remember that new purchases take one to two business days to settle, so you cannot sell them until settlement is complete.

Frequently Asked Questions

Can I sell stock before the market opens?

Yes, Robinhood offers extended-hours trading starting at 4 a.m. Eastern time. However, extended-hours sessions have fewer buyers and sellers, so your order may not fill or may fill at a very different price than you see during regular market hours. Most people sell during 9:30 a.m. to 4 p.m. Eastern when there is the most trading activity.

What is the difference between selling all my shares and selling some?

When you sell, you choose exactly how many shares to sell. You can sell one share, half your position, or all of it. Robinhood lets you enter any number, including fractional amounts. Selling only some shares means you keep the rest in your account and can sell them later.

Do I pay a fee to sell stock on Robinhood?

No. Robinhood charges no commission on stock sales. You do not pay anything to place the order or to settle it. The only cost is the capital gains tax you owe if you sold for a profit, which you pay to the IRS when you file your tax return.

How long does it take for the money to appear in my account after I sell?

The cash appears in your Robinhood account when ready after your order fills, usually within minutes during market hours. However, you cannot withdraw it to your bank account until the sale settles, which takes one to two business days. You can use the cash to buy other stocks right away.

What if I sell by mistake?

Once your order fills, you cannot undo the sale. However, you can buy the stock back when ready if you want to own it again. If you catch the mistake before the order fills, you can cancel the order by opening it and tapping cancel.