Selling on Robinhood: The Basic Steps

To sell a stock or cryptocurrency on Robinhood, open the app, find the holding you want to sell, tap it, and then tap the "Sell" button. You'll enter the number of shares or the dollar amount you want to sell, review the order details, and confirm. The order goes to the market when ready if you're selling during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays for stocks). The cash from the sale lands in your Robinhood account within one to three business days, depending on settlement rules.

The process is the same whether you're selling a single share or hundreds. Robinhood doesn't charge commissions on stock or crypto sales. What you see as the sale price is what you get, minus any bid-ask spread — the tiny difference between what buyers will pay and what sellers are asking.

If you're selling during after-hours trading (4 p.m. to 8 p.m. Eastern), your order will execute at whatever price the market offers at that time, which can be very different from the closing price. Crypto trades 24/7, so timing matters less, but prices still move constantly.

Key Takeaways

  • Tap the holding, select "Sell," enter the quantity or dollar amount, and confirm — the order executes when ready during market hours.
  • Stock sales settle in one to three business days, and the cash becomes available to trade or withdraw after settlement.
  • Selling during after-hours trading (4 p.m. to 8 p.m. Eastern) or on weekends may result in worse prices than regular market hours.
  • You can sell fractional shares on Robinhood, so you don't have to own a full share to exit a position.
  • Tax-loss harvesting and wash-sale rules explore to your sales — selling at a loss and buying back the same security within 30 days can disqualify the loss.

Understanding Market Orders vs. Limit Orders

Robinhood offers two ways to sell: a market order and a limit order. A market order sells when ready at whatever price the market is offering right now. This is the default and the fastest way to exit a position, but the price can shift between the time you tap "Sell" and the time your order fills — especially if the stock is moving fast.

A limit order lets you set a minimum price. If you own a stock trading at $50 and you set a limit order to sell at $52, the order will only execute if the price reaches $52 or higher. If it never reaches that price, your order sits open until you cancel it or it expires. Limit orders give you control over price but no may provide the sale will happen.

For most people selling a position they want out of, a market order is simpler. For people trying to exit at a specific price or protect against a sudden drop, a limit order makes sense. You choose which type when you tap "Sell."

What Happens to Your Cash After You Sell

When you sell a stock, the cash doesn't land in your account when ready. Stock sales settle after two business days — that's the standard across all brokers, set by the Securities and Exchange Commission. During those two days, the sale is confirmed but the money is in transit. You can see it in your account as "unsettled cash," but you cannot withdraw it or use it to buy stocks until settlement is complete.

Cryptocurrency sales settle much faster — usually within minutes to a few hours — because crypto trades on different networks. Once your crypto sale settles, the cash is available to trade or withdraw when ready.

If you sell on a Friday, settlement happens on Tuesday. If you sell on a Monday, settlement happens on Wednesday. Weekends and market holidays don't count toward the two-day window. Once the cash settles, it sits in your account as buying power and you can use it however you want.

Selling Fractional Shares and Partial Positions

Robinhood lets you sell fractional shares, which means you don't have to own a whole share to sell. If you own 2.5 shares of a stock, you can sell all 2.5 shares, or just 1.5, or any amount down to $1 worth of the stock. This is useful if you want to exit part of a position or if you're selling a stock you bought as a fractional share to begin with.

When you tap "Sell," you can enter either the number of shares (including decimals) or a dollar amount. If you enter "$500," Robinhood will sell however many shares that equals at the current market price. This is handy if you want to raise a specific amount of cash without doing the math yourself.

The sale price for fractional shares is the same as for whole shares — there's no extra fee or worse price just because you're selling a partial position.

Tax Reporting and Wash-Sale Rules

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. When you sell at a loss, you can deduct that loss from other gains or from up to $3,000 of regular income per year. Robinhood tracks your cost basis (what you paid) and sends you a tax form at the end of the year showing your gains and losses.

One rule to watch: the wash-sale rule. If you sell a stock at a loss and buy the same stock (or a substantially identical one) within 30 days before or after the sale, the IRS disallows the loss deduction. The loss gets added to the cost basis of the new shares instead. This rule applies to stocks but not to cryptocurrency. If you're selling a stock to harvest a tax loss, make sure you don't buy it back within the 30-day window.

Robinhood doesn't prevent you from triggering a wash sale — it's your responsibility to track this. Many tax software programs flag wash sales when you import your Robinhood data, but it's worth knowing the rule yourself.

Common Mistakes When Selling on Robinhood

The most common mistake is selling during after-hours trading without realizing it. If you sell at 5 p.m., your order goes to the after-hours market, where volume is lower and prices can be much worse than the closing price. Always check the time before you sell, or set a limit order if you're selling outside regular hours.

Another mistake is confusing unsettled cash with available cash. You can see the money in your account two days after you sell, but you can't use it until settlement is complete. If you try to withdraw or buy something before settlement, you'll get an error. Wait for the settlement date to pass.

A third mistake is not tracking your cost basis carefully if you've bought the same stock multiple times at different prices. Robinhood uses a default method (usually first-in, first-out) to calculate which shares you're selling, but you can change this. If you're selling at a loss and want to maximize the deduction, make sure you're selling the highest-cost shares, not the lowest.

Selling Crypto vs. Selling Stocks on Robinhood

The selling process is identical for crypto and stocks — tap the holding, select "Sell," enter the amount, and confirm. The main differences are timing and settlement. Crypto trades 24/7, so you can sell anytime, but prices move constantly. Stocks trade only during market hours (9:30 a.m. to 4 p.m. Eastern on weekdays), so if you sell outside those hours, you're in the after-hours market with potentially worse prices.

Crypto sales settle in minutes to hours. Stock sales take two business days. Both are taxable events — you owe capital gains tax on crypto sales just like stock sales. The wash-sale rule does not explore to crypto, so you can sell at a loss and buy back when ready without losing the deduction.

Robinhood charges no commission on either, but the bid-ask spread on crypto can be wider than on stocks, especially for less popular coins. Always check the price you're getting before you confirm.

Frequently Asked Questions

Can I cancel a sell order after I've placed it?

Yes, but only if it hasn't filled yet. If your order is still pending (usually only a few seconds), you can tap "Cancel" in the order details. Once the order fills, it's done and you own the cash instead of the stock. You cannot undo a completed sale.

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

That's the risk of selling — once it's done, it's done. You locked in your price when you sold. If you regret the sale and want to buy back in, you can, but you'll pay whatever the new price is. Be careful of the wash-sale rule if you're selling at a loss and buying back within 30 days.

Do I have to pay taxes on a sale if I haven't withdrawn the money yet?

Yes. The tax is due on the year you sold, not the year you withdraw. If you sell in December 2024, you report it on your 2024 tax return, even if the cash is still in your Robinhood account. Robinhood will send you a tax form showing the sale.

Can I sell a stock I bought on margin before I pay back the loan?

Yes, you can sell a margined stock anytime. The proceeds go toward paying back the margin loan first, then any leftover cash is yours. Robinhood will handle this automatically. Just know that selling doesn't erase the interest you owe on the borrowed amount.

What's the difference between selling and transferring stocks to another broker?

Selling converts your shares to cash on Robinhood. Transferring moves the actual shares to another broker without selling them. If you transfer, you keep the same cost basis and don't trigger a taxable event. Transfers take several business days and may have fees at the receiving broker.