Selling stock on Robinhood takes four steps: open the stock, tap Sell, choose your order type, and confirm

To sell a stock you own on Robinhood, open the app, find the stock in your portfolio, tap the Sell button, pick how you want to sell (market order or limit order), enter the number of shares, and confirm. The entire process takes about two minutes. Your cash lands in your Robinhood account when ready, though it may take one to two business days to transfer to your bank if you withdraw it.

The steps are the same whether you are selling one share or many, and whether you bought the stock years ago or this morning. Robinhood does not charge a commission to sell, so you keep all the proceeds minus any loss from the price dropping since you bought.

Key Takeaways

  • A market order sells your shares at whatever price the market is offering right now, usually within seconds.
  • A limit order lets you set a minimum price you will accept, but the sale may not happen if the stock never reaches that price.
  • Robinhood settles stock sales in one business day, meaning the cash is yours to trade with when ready, even if your bank transfer takes longer.
  • Selling at a loss is allowed and does not prevent you from selling again, but it may affect your taxes if you sell the same stock within 30 days of buying it at a higher price.

Market orders versus limit orders

When you tap Sell, Robinhood asks you to choose an order type. A market order sells your shares right away at the current market price. If a stock is trading at $50 per share, your market order executes at or very close to $50. This is the fastest way to sell and almost always goes through, but you do not control the exact price.

A limit order lets you name the lowest price you will accept. If you own shares trading at $50 but you want $52, you set a limit order for $52. The sale only happens if the stock climbs to $52 or higher. If it never does, your shares stay in your account and the order expires after 90 days. Limit orders give you control but no may provide the sale will happen.

For most people selling a stock they no longer want, a market order is simpler. Use a limit order if you are willing to wait for a specific price and can live with the shares not selling at all.

Entering the number of shares and confirming

After you choose your order type, Robinhood shows you a box where you enter how many shares to sell. You can sell all your shares at once, or just some of them. If you own 100 shares and enter 30, you will have 70 left after the sale.

Robinhood then shows you a summary: the number of shares, the order type, the price (for market orders) or your limit price (for limit orders), and the estimated proceeds. Check this summary carefully. Once you tap Confirm or Submit, the order goes to the market and cannot be cancelled if it has already executed. If you are using a limit order and the stock has not yet reached your price, you can still cancel before it fills.

What happens after you sell

When your sale executes, the cash appears in your Robinhood account balance when ready. You can use this cash to buy other stocks, or you can request a transfer to your bank account. Robinhood processes transfers within one to two business days, though your bank may take an additional day or two to show the money.

The sale itself settles in one business day, which is the standard for stock markets in the United States. This means Robinhood considers the transaction complete after one business day, even if your bank has not received the money yet. You are free to trade with the proceeds right away.

Selling during market hours versus after hours

The stock market is open Monday through Friday from 9:30 a.m. to 4 p.m. Eastern Time. During these hours, you can place market orders and limit orders, and they will execute quickly at the prices you see on your screen.

Robinhood also offers extended hours trading from 4 p.m. to 8 p.m. Eastern Time (after-hours) and from 7 a.m. to 9:30 a.m. (pre-market). You can sell during these times, but prices move differently, trading volume is lower, and your order may take longer to fill or may not fill at all. Most people sell during regular market hours when prices are most active.

Selling fractional shares

If you own a fractional share — for example, 10.5 shares instead of 10 — you can sell the fractional part just like a whole share. Robinhood displays fractional shares in your portfolio and lets you enter any number, including decimals, in the sell box. The proceeds are calculated the same way: number of shares times the price per share.

Fractional shares come from dividend reinvestment or from buying stocks in small dollar amounts. Selling them works identically to selling whole shares, and there is no extra fee.

Tax reporting and wash sales

When you sell a stock for more than you paid, you have a capital gain. When you sell for less, you have a capital loss. Both affect your taxes. Robinhood sends you a tax document called a Form 1099-B at the end of the year listing all your sales and the gains or losses.

One rule to know: if you sell a stock at a loss and then buy the same stock (or a very similar one) within 30 days before or after the sale, the IRS treats this as a wash sale. Your loss is not deductible that year, though it carries forward to reduce future gains. This rule exists to prevent people from selling losers just for the tax deduction and when ready buying them back. If you are selling a stock because you no longer want it, wash sales do not affect you.

Common mistakes when selling

The most common mistake is placing a limit order and forgetting about it. If you set a limit order for $52 and the stock never reaches $52, your shares stay in your account and the order expires after 90 days. Check your open orders regularly if you use limit orders.

Another mistake is selling during after-hours trading when you meant to sell during regular hours. After-hours prices can be very different from the closing price, and your order may not fill. If you see an unexpectedly low price on your screen late in the day, check whether the market is still open.

A third mistake is selling all your shares of a stock without meaning to. Robinhood defaults to "Sell All" in some versions of the app. Always check the number of shares before you confirm.

Frequently Asked Questions

Can I sell a stock I bought on margin?

Yes, you can sell stocks bought on margin the same way you sell stocks you paid for in full. Robinhood does not treat them differently in the sell process. However, if you sell at a loss and your account balance drops below Robinhood's maintenance requirement, you may receive a margin call asking you to deposit cash.

What if my sell order does not go through?

If you placed a market order and it did not execute, check whether the market was open at the time. Market orders during regular hours almost always execute, but after-hours orders may not if there is no buyer. If you placed a limit order, the stock straightforward did not reach your price. You can cancel the order and try again with a lower limit or a market order.

Do I have to wait for the money to reach my bank before I can trade again?

No. The cash appears in your Robinhood account when ready after the sale settles (one business day), and you can trade with it right away. You do not have to wait for a bank transfer to complete. The transfer to your bank is separate and takes an additional one to two business days.

Can I sell a stock that is down 90 percent?

Yes. Robinhood allows you to sell any stock you own, no matter how far the price has fallen. There is no minimum price or minimum gain required. You can sell at a loss whenever you want.

What if I sell by mistake?

If your order has already executed, you cannot undo the sale. You can buy the stock back, but you will pay the current market price, which may be higher than what you just sold it for. If your order has not yet executed (for example, a limit order waiting for a higher price), you can cancel it from your open orders list.