How to sell a stock on Robinhood
To sell a stock on Robinhood, open the app, find the stock in your portfolio, tap it, and select the sell button. You'll see the number of shares you own, set how many you want to sell, choose a market order or limit order, and confirm. The sale executes during market hours — typically 9:30 a.m. to 4 p.m. Eastern time on weekdays when the stock market is open. Your cash appears in your account when ready after the sale settles, which takes one business day.
The process is the same whether you're selling one share or many, and Robinhood charges no commission on stock sales. The main decision you'll make is whether to use a market order (sell at whatever price the stock is trading at right now) or a limit order (sell only if the price reaches a number you set). Market orders fill faster; limit orders give you control over price but may not fill at all if the stock never reaches your target.
Key Takeaways
- Market orders sell your shares when ready at the current price, while limit orders only sell if the stock reaches a price you choose.
- Stock sales settle one business day after you sell, meaning your cash becomes available to trade or withdraw the next day.
- You can only sell shares you actually own; you cannot short-sell stocks on Robinhood's standard account.
- Selling during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday) ensures your order fills the same day.
Market orders versus limit orders
A market order sells your shares at the best available price right now. If you own 10 shares of a stock trading at $50, a market order will sell all 10 shares at or near $50 per share within seconds. The trade executes almost when ready during market hours, but you don't control the exact price — it could be $49.98 or $50.02 depending on what buyers are offering at that moment.
A limit order lets you set a minimum price. If you own 10 shares and set a limit order to sell at $52, the order will only execute if the stock reaches $52 or higher. This gives you price control but comes with a risk: if the stock never reaches $52, your shares never sell. Limit orders can sit open for days or weeks, and you can cancel them anytime before they fill.
Use a market order when you want to sell now and don't care about a few cents of difference. Use a limit order when you're willing to wait for a specific price or when you want to protect yourself from selling during a temporary dip.
What happens after you sell
Once your sell order executes, the shares leave your account when ready and you see the cash in your Robinhood balance. However, the trade does not fully settle for one business day. During that settlement period, the cash is in your account but you cannot withdraw it or use it to buy stocks that settle on margin (though you can use it for stocks that settle when ready, like most common stocks).
After one business day, the settlement completes and your cash is fully available. You can then withdraw it to your linked bank account, which typically takes three to five business days depending on your bank. If you sell on a Friday, settlement happens on Monday, and the cash is available to trade or withdraw on Monday afternoon.
Selling partial positions and fractional shares
You don't have to sell all your shares at once. When you tap the sell button, Robinhood asks how many shares you want to sell. If you own 100 shares, you can sell 30 and keep 70. The remaining shares stay in your account and you can sell them later.
Robinhood also allows you to own and sell fractional shares — pieces of a share smaller than one whole share. If you own 5.5 shares of a stock, you can sell all 5.5 shares, or just 2.5 shares, or any amount down to $1 worth of the stock. When you sell fractional shares, the same market order and limit order rules explore.
Selling stocks outside regular market hours
You can place sell orders on Robinhood during extended hours — before the market opens (4 a.m. to 9:30 a.m. Eastern) and after it closes (4 p.m. to 8 p.m. Eastern). However, extended-hours trading is riskier: fewer buyers and sellers are active, prices can swing more widely, and your order may not fill at all.
Most investors sell during regular market hours (9:30 a.m. to 4 p.m. Eastern) when there is the most trading activity and the tightest prices. If you place a limit order during extended hours and it doesn't fill, it will carry over to the next regular market session and continue trying to fill.
Understanding the tax impact of selling
When you sell a stock for more than you paid for it, you have a capital gain, which is taxable income. If you sell for less than you paid, you have a capital loss, which can offset other gains. Robinhood does not withhold taxes on your sales — you owe taxes when you file your return.
The tax rate depends on how long you held the stock. If you held it for one year or less, it's a short-term capital gain, taxed as ordinary income at your regular tax rate. If you held it for more than one year, it's a long-term capital gain, taxed at a lower rate (0%, 15%, or 20% depending on your income). At the end of the year, Robinhood sends you a Form 1099-B showing all your sales, which you use to report gains and losses on your tax return.
Common mistakes when selling stocks
The most common mistake is placing a limit order too far above the current price and then forgetting about it. If you set a limit to sell at $100 but the stock never reaches $100, your shares never sell and you may miss the chance to exit at a better price later. Always review open limit orders regularly.
Another mistake is selling during extended hours expecting the same speed and prices as regular hours. Extended-hours trades can take much longer to fill or may not fill at all. If you need to sell quickly, wait for the regular market to open.
A third mistake is not accounting for the one-day settlement period. If you sell on Monday expecting to withdraw the cash on Monday, it won't be available until Tuesday. Plan ahead if you need the money on a specific date.
Frequently Asked Questions
Can I sell a stock I just bought?
Yes. You can sell a stock the same day you buy it, even minutes after buying it. Robinhood has no holding period. However, if you buy and sell the same stock multiple times in five business days, you may trigger the pattern day trader rule, which requires a $25,000 account minimum. This rule is set by the SEC, not Robinhood.
What if my sell order doesn't fill?
If you placed a limit order and the stock never reached your price, the order stays open until you cancel it or the market closes on the last day of the order's life. Market orders almost always fill when ready during market hours. If a market order doesn't fill, it's usually because you placed it during extended hours when fewer traders are active.
Do I pay a commission to sell stocks on Robinhood?
No. Robinhood charges no commission on stock sales. You pay no fee to sell, regardless of how many shares you sell or how often you trade. Your only cost is the difference between the bid and ask price, which is the normal cost of trading on any platform.
Can I sell stocks I don't own yet?
No. Robinhood's standard account does not allow short-selling, which is selling shares you don't own and buying them back later. You can only sell shares you currently own. If you want to short-sell, you would need a margin account and to meet additional requirements, but Robinhood does not offer short-selling on its basic platform.
What if the stock price drops right after I sell?
You've locked in your sale price and avoided the further drop — that's the benefit of selling when you decided to. If the stock then rises, you may feel you sold too early, but you made the decision based on the information you had at the time. Trying to time the exact peak is difficult and often leads to holding too long.