Setting a stop loss order on Robinhood
A stop loss order is an instruction to sell a stock automatically when its price drops to a level you choose. On Robinhood, you set this up by opening the stock's detail page, tapping the order button, selecting "Stop Loss" as the order type, entering the price at which you want to sell, 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 exactly the price you set. Once the stock reaches your stop price, Robinhood sends a market order to sell when ready, which means the actual sale price may be lower, especially in fast-moving markets or during gaps in trading. You are responsible for deciding whether the protection a stop loss offers is worth the risk that you might sell lower than expected.
Key Takeaways
- Stop loss orders on Robinhood convert to market sell orders once the stock price touches your chosen stop price, not limit orders.
- The actual sale price may be lower than your stop price if the stock is falling quickly or the market is volatile.
- You can set a stop loss order from the stock detail page by selecting the order type and entering your stop price.
- Stop loss orders remain active until the stock hits the stop price, you cancel the order, or the market closes for the day on certain account types.
How to find and open the order screen
Open the Robinhood app and search for or navigate to the stock you own. Tap on the stock name to open its detail page. At the bottom of the screen, you will see a row of buttons — one of them says "Trade" or shows a dollar sign icon. Tap that button to open the order entry screen.
Once the order screen opens, you will see options for the type of order you want to place. The default is usually "Buy" or "Sell". You need to change this to "Stop Loss" before you enter any prices or quantities.
Selecting stop loss as your order type
On the order screen, look for the order type selector — it is usually near the top and shows the current selection like "Market" or "Limit". Tap it to see the full list of order types available. Scroll down until you see "Stop Loss" and tap it.
Once you select "Stop Loss", the order form will change to show you two price fields: one for the stop price (the price at which the order triggers) and one for the quantity of shares you want to sell. Some versions of the app may also show a preview of what will happen when the order triggers.
Entering your stop price and share quantity
In the stop price field, enter the dollar amount below the current stock price where you want the sale to happen. For example, if a stock is trading at $50 and you want to sell if it drops to $45, enter 45 in the stop price field. The stop price must be lower than the current price — Robinhood will not let you set a stop loss above where the stock is trading now.
In the quantity field, enter how many shares you want to sell when the order triggers. You can sell all your shares of that stock or just a portion. Robinhood will show you how many shares you own, so you can verify you are not trying to sell more than you have.
Reviewing and confirming your order
Before you submit the order, review the stop price and quantity one more time. Robinhood will show you a summary that includes the stock name, the number of shares, and the stop price you entered. Check that the stop price is the level you actually want — once you confirm, the order is live and will trigger automatically if the stock reaches that price.
Tap "Submit" or "Place Order" to confirm. Robinhood will send you a notification confirming the order was placed. You can see all your active stop loss orders in the "Orders" or "Activity" section of the app, where you can also cancel them if you change your mind before the stock hits the stop price.
What happens when your stop price is reached
When the stock price touches or falls below your stop price, Robinhood automatically converts your stop loss order into a market sell order. This market order is sent to the exchange when ready and sells your shares at whatever price is available at that moment. In a normal market, this happens within seconds, but the price you receive may be lower than your stop price if the stock is falling quickly.
During market gaps — when a stock opens significantly lower than the previous close — your stop loss order may trigger at a price well below where you set it. This is a real risk of stop loss orders: they protect you from holding a falling stock, but they do not protect you from selling at a worse price than you expected. Once the market order executes, the order is complete and you no longer own those shares.
Canceling a stop loss order before it triggers
If you change your mind before the stock reaches your stop price, you can cancel the order at any time while the market is open. Open the app, go to the "Orders" or "Activity" section, find the stop loss order you want to cancel, and tap the option to cancel or delete it. The order will be removed and your shares will remain in your account.
If you cancel after the market closes, the order may still be active for the next trading day depending on your account type. Check the order details to see whether it is set to expire at the end of the day or remain active until you cancel it manually.
Frequently Asked Questions
Can I set a stop loss order on a stock I do not own yet?
No. Stop loss orders only work on shares you already own. If you want to set up an order to sell a stock you plan to buy, you would need to buy the stock first, then set the stop loss order.
What is the difference between a stop loss order and a stop limit order?
A stop loss order becomes a market order once triggered, so it sells at the next available price. A stop limit order becomes a limit order, which means it will only sell at your chosen price or better — but it may not sell at all if the stock falls below that price without ever trading at it.
Will my stop loss order work if the market is closed?
No. Stop loss orders only trigger during regular market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If a stock gaps down before the market opens, your stop loss will not trigger until the market is open and the stock trades at or below your stop price.
Can I set multiple stop loss orders on the same stock?
Yes. You can place more than one stop loss order on the same stock at different price levels. Each order will trigger independently if the stock reaches that price. This lets you sell portions of your position at different levels as the price falls.
What happens to my stop loss order if the stock splits?
Robinhood automatically adjusts your stop loss order to account for stock splits. If you own 100 shares and the stock splits 2-for-1, your stop loss order quantity will adjust to 200 shares, and your stop price will adjust proportionally so the order still represents the same protection level.