How to Sell Stocks on Robinhood? Detailed Steps

Selling stocks on Robinhood is a simple process. To make a sell order, just enter the number of shares or the dollar worth of the specified stock. Then, check the details of the order and, once you are done, hit the button to sell the stock. This process can be performed easily by casual investors on the Robinhood app. Keep reading as we get into the details of selling stocks on Robinhood in this post.

How to Sell Stocks on Robinhood?

Open the Robinhood app, touch on the stock you have, and then choose the Sell tab to sell it. After reviewing the order details and selecting the number of shares or dollar amount to sell, you may either swipe or tap the Sell button to submit. There is a “Sell all” button on the stock’s trading site that you can use to sell all or a portion of your shares.

Note that during extended hours (7-9:30 ET or 16:00–20:00 ET) and 24/5 market hours (24/5, 20:00 ET Sunday-20:00 ET Friday), you cannot select sell market orders. So, limit your order types. Orders placed in stocks that are not eligible for the 24/5 market or when the market is closed, go in line for regular market hours.

Stepwise Process to Sell Stocks on Robinhood

Here’s a step-by-step process to sell stocks:

• Open the Robinhood app.
• Navigate to the stock’s detail page.
• Find the Sell tab and click it.
• Select the order type. You can make it a Sell order.
• Now, select dollars or shares.
• In the bottom, you’ll find the availability of that stock you own.
• Click the ‘Sell all’ button if you want to sell all of the stock that you own.
• You can also set the amount of the stock you want to sell and then check the ‘Order Summary’ below of how much it comes out to be.
• Finally, review all the details and hit the ‘Sell’ button.

Order Types for Selling Stocks

Knowing different order types when selling stocks on Robinhood is essential. There are various order types, such as:

1. Market orders – These are Good-for-Day (GFD) orders. Some other order types are GFD or Good-til-Canceled (GTC). Choosing it means you are fine with the next available price. This type of order can be chosen during regular market hours if it is a dollar-based order or a share-based sell order.
2. Limit orders – These can be sold at your specific limit price or better, and let you have more control over execution prices. Depending on the last price your order is filled at, the final dollar amount of the limit order can be different from what is estimated in the Robinhood app.
3. Stop orders – When the stock reaches your stop price, you can execute a stop order. This order becomes a market order and is executed at the most competitive price present during market hours only. These orders are executed when there is a temporary price swing.
4. Stop limit orders – These are a blend of a stop order and a limit order. A limit order is triggered when the stock reaches a stop price that you specify. The limit order is then carried out at your limit price or above. Stop limit orders are frequently used by investors to try to protect a profit or prevent a loss in the event that the stock goes in the wrong direction.
5. Trailing stop orders – With a trailing stop order, you can monitor a stock’s price and, should the stock hit the trailing stop price, initiate a market order. Trailing stop orders are frequently used by investors as part of an exit plan or to assist in minimizing their maximum potential loss.

How Long Does It Take to Sell Stocks on Robinhood?

Selling stocks on Robinhood involves two distinct timeframes:

1. The execution time for the actual sale
2. The settlement period before funds become ready for withdrawal

Immediate Stock Sale Execution

Upon placing a sell order on Robinhood, the actual execution happens almost instantly during market hours. If you use a market order, your stock will typically sell immediately at the current market price if there are buyers. Limit orders may take longer to execute or may not execute if the stock price doesn’t reach your specified limit.

Settlement Period: T+1 System

The more important consideration is the settlement period. It’s the time it takes for the transaction to process fully and for the funds to become available. Robinhood follows the T+1 settlement cycle for stocks and ETFs. It means that most stock, bond, and ETF trades settle one business day post transaction date (T+1). This change allows quicker access to funds for investors.

Concluding Words

Now, you know how to sell stocks on Robinhood. The whole process needs you to be aware of the order types and the settlement period. Moreover, the user-friendly interface of the stock page on the app lets you view every single detail and amount related to your stock. If you have any more questions about it, feel free to contact Robinhood support.

Frequently Asked Questions

1. Why can’t I sell my shares on Robinhood?

If you have outstanding pending orders for some or all of your shares, Robinhood won’t allow you to place another sell order until you cancel the existing one.

2. How do I sell all my stocks at once on Robinhood?

Navigate to the stock’s detail page on the Robinhood app. Choose the Sell tab and the order type. After choosing dollars or shares, hit the ‘Sell all’ button. It will sell all your stocks.

3. How to sell stocks on Robinhood and transfer it to a bank?

After selling and converting your stocks into cash, navigate to the ‘Transfers’ section in the app. Opt to transfer money from your Robinhood account to your linked bank account. Define an amount to withdraw and confirm its transfer.