Stop loss orders on Robinhood work through the app's order menu

A stop loss order is an instruction to sell a stock automatically when its price drops to a level you set in advance. On Robinhood, you place a stop loss by opening a stock's detail page, tapping the order button, selecting "Stop Loss" from the order type menu, entering your stop price, and confirming the order. The order sits inactive until the stock hits that price — then Robinhood converts it to a market sell order and executes it at the next available price.

Stop loss orders do not may provide you will sell at your exact stop price. Once the stock drops to your stop price, the order becomes a market order, which means it sells at whatever price the stock is trading at that moment. If the stock is falling quickly, the actual sale price may be lower than your stop price. This gap between your intended price and the actual sale price is called slippage.

Robinhood charges no commission to place or execute a stop loss order, but the order follows the same market hours and rules as any other sell order on the platform.

Key Takeaways

  • Stop loss orders on Robinhood become market sell orders once the stock price reaches your stop price, so the actual sale price may be lower than you intended.
  • You set a stop loss by selecting the stock, tapping the order button, choosing "Stop Loss" as the order type, and entering your stop price.
  • Stop loss orders only work during market hours (9:30 a.m. to 4 p.m. Eastern time on regular trading days) unless you enable extended hours trading.
  • If you place a stop loss order and then sell the stock through another order before the stop price is reached, the stop loss order cancels automatically.

How to find the stop loss order option in the Robinhood app

Open the Robinhood app and search for or navigate to the stock you want to protect with a stop loss. Tap the stock name to open its detail page. At the bottom of the screen, you will see a button labeled "Buy" and a button labeled "Sell" — tap "Sell".

The app will show you a menu of order types. The default is "Market" order. Scroll down or look for the option labeled "Stop Loss" and tap it. This opens the stop loss order form where you enter your stop price and review the number of shares you are selling.

If you do not see "Stop Loss" as an option, check that you own at least one share of the stock. Robinhood does not allow stop loss orders on stocks you do not hold. You also cannot place a stop loss order on fractional shares in most cases — the order requires whole shares.

Setting your stop price and understanding what happens when it triggers

When you open the stop loss form, Robinhood shows you the current stock price and a field where you enter your stop price. Your stop price must be lower than the current stock price — you cannot set a stop loss above the price the stock is trading at now. For example, if a stock is trading at $50, you might set a stop price of $45.

Once you confirm the order, it remains inactive and does nothing until the stock price falls to your stop price or lower. The moment the stock hits that price, Robinhood automatically converts the stop loss into a market sell order. A market order sells when ready at the best available price at that moment, which may be lower than your stop price if the stock is falling fast.

The order executes during regular market hours (9:30 a.m. to 4 p.m. Eastern time). If the stock reaches your stop price during after-hours trading and you have not enabled extended hours for that order, the stop loss will not trigger until the regular market opens the next day. By then, the price may have moved significantly.

Canceling or modifying a stop loss order before it executes

You can cancel a stop loss order at any time before it triggers. Open the stock's detail page, scroll down to the "Orders" section, find the stop loss order in the list, and tap it. Select "Cancel Order" and confirm. The order disappears and no sale will occur.

Robinhood does not allow you to edit a stop loss order after you place it. If you want to change your stop price, you must cancel the existing order and place a new one with the new stop price. This means you have a brief window where no stop loss is active on the stock — if the price drops during that moment, you have no protection.

If you sell the stock through any other order (a market order, a limit order, or any other method) before your stop loss triggers, Robinhood cancels the stop loss order automatically. You will not be able to sell the same shares twice.

Stop loss orders and extended hours trading

By default, stop loss orders on Robinhood only work during regular market hours: 9:30 a.m. to 4 p.m. Eastern time, Monday through Friday. If a stock reaches your stop price during pre-market trading (4 a.m. to 9:30 a.m.) or after-hours trading (4 p.m. to 8 p.m.), the order will not trigger until the regular market opens.

Robinhood offers extended hours trading, but stop loss orders do not automatically participate in it. You must specifically enable extended hours when you place the stop loss order. Look for a toggle or checkbox labeled "Extended Hours" in the stop loss order form. If you enable it, the order can trigger during pre-market and after-hours sessions as well as regular hours.

Extended hours trading has wider bid-ask spreads and lower volume than regular hours, which means slippage is often larger. Your stop loss may execute at a price significantly lower than your stop price if it triggers during extended hours.

Comparing stop loss orders to other order types on Robinhood

A limit order lets you set a minimum price you will accept when selling — the stock will only sell if it reaches that price or higher. A stop loss order does the opposite: it triggers when the price falls to a certain level, but then sells at market price, which may be lower than your stop price. Limit orders give you price control but may never execute if the stock does not reach your limit. Stop loss orders execute when triggered but may not get your target price.

A trailing stop is a stop loss that adjusts automatically as the stock price rises. For example, a trailing stop set 10% below the current price will move up if the stock climbs, but will trigger if the stock falls 10% from its highest point. Robinhood does not offer trailing stops directly in the app, though some third-party tools can simulate them.

A market order sells when ready at the best available price with no conditions. It executes right away but gives you no control over the price. A stop loss order is a market order that only triggers when a condition (the stop price) is met.

Common mistakes and things to watch for

Setting your stop price too close to the current stock price is the most common mistake. If a stock is at $50 and you set a stop loss at $49, a small dip in price will trigger the order and sell you out of the position. Many traders set their stop price 5% to 10% below the current price to avoid being stopped out by normal daily movement.

Forgetting that stop loss orders become market orders is another frequent error. Traders sometimes assume they will sell at the stop price, then are surprised when the actual sale price is lower. This happens especially during volatile trading or when the stock gaps down overnight — the stock price can jump past your stop price so quickly that the market order executes at a much lower level.

Placing a stop loss during after-hours trading and forgetting to enable extended hours means the order will not trigger until the next regular market session. If the stock falls sharply overnight, you will not be protected until 9:30 a.m. Eastern time.

Frequently Asked Questions

Can I place a stop loss order on a stock I own fractional shares of?

Robinhood typically requires whole shares for stop loss orders. If you own only fractional shares, you cannot place a stop loss on that position. You would need to own at least one full share. Check the app when you try to place the order — Robinhood will tell you if the order is not allowed for your holding.

What happens if my stop loss order triggers after the market closes?

If extended hours is not enabled, the order waits until the next regular market session opens at 9:30 a.m. Eastern time. The stock price may have moved significantly by then. If extended hours is enabled, the order can trigger during after-hours trading, though the sale price may be worse due to lower volume and wider spreads.

Can I place a stop loss order on a stock I do not own yet?

No. Robinhood only allows stop loss orders on stocks you currently hold. You must own at least one share of the stock before you can place a stop loss on it. If you want to sell a stock short and use a stop loss to limit losses, Robinhood does not offer short selling to most account types.

Does Robinhood charge a fee for stop loss orders?

No. Robinhood charges no commission or fee to place a stop loss order or to execute it when it triggers. You pay no cost beyond the bid-ask spread that applies to any market order.

What is the difference between a stop loss and a stop limit order?

A stop loss becomes a market order when triggered, so it sells at the best available price. A stop limit order becomes a limit order when triggered, so it only sells if the price is at or above your limit price. Stop limit orders give you price control but may not execute if the stock falls past your limit price without hitting it.