How to Sell Stocks on Robinhood: Step-by-Step Instructions
How to sell a stock on Robinhood
To sell a stock on Robinhood, open the app or website, find the stock in your portfolio, tap or click the stock name, and select the sell button. You will then enter the number of shares you want to sell, choose whether to sell at market price (immediately) or set a limit price (only if it reaches that price), and confirm the order. The sale typically settles within one to two business days, meaning the cash becomes available in your account after that time.
The entire process takes less than a minute once you have decided which stock to sell and how many shares. Robinhood does not charge a commission on stock sales, so you keep all the proceeds minus any taxes you owe on gains.
Key Takeaways
- Market orders sell your shares immediately at the current price, while limit orders only sell if the stock reaches the price you set.
- You can sell a partial position (some of your shares) or all of your shares in a single stock.
- Cash from a stock sale settles in one to two business days and then becomes available to withdraw or reinvest.
- Selling a stock may trigger a capital gains tax if you sold it for more than you paid, and you are responsible for reporting that to the IRS.
Market orders versus limit orders
A market order sells your shares at whatever price the stock is trading at right now. If you place a market order during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), the sale usually executes within seconds. This is the fastest way to sell, but you do not control the exact price — it may be slightly higher or lower than the price you saw when you tapped sell.
A limit order lets you set a minimum price. Your shares will only sell if the stock reaches that price or higher. If the stock never reaches your limit price, the order stays open until you cancel it or until the market closes that day (for day limit orders) or until you manually cancel it (for good-till-cancelled orders). Limit orders give you price control but mean your shares might not sell at all.
Most people use market orders when they want to sell quickly and limit orders when they are willing to wait for a better price or want to protect against selling during a sudden dip.
Selling during market hours versus after hours
Robinhood lets you trade during regular market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday) and also during extended hours (4 p.m. to 8 p.m. Eastern in the evening, and 7 a.m. to 9:30 a.m. in the morning). Extended-hours trading is available to most Robinhood users, but prices can be much wider and less reliable because fewer traders are active.
If you sell during regular market hours, your order will almost certainly execute at a price close to what you see on screen. If you sell during extended hours, the price you get may be significantly different from the last price shown during the regular market close. For this reason, most investors sell during regular market hours when they want certainty about the price.
What happens to the cash after you sell
When your sale executes, the cash does not immediately appear in your account. Instead, it enters a settlement period that lasts one to two business days. During this time, the trade is being processed behind the scenes. After settlement completes, the cash lands in your Robinhood account and you can withdraw it to your bank account or use it to buy other stocks.
If you want to use the cash to buy stocks before settlement is complete, Robinhood may let you do so through a feature called margin or instant settlement, depending on your account type. However, if you do not have enough settled cash and you use unsettled cash to buy, you may trigger a good-faith violation if you sell those new shares before the original sale settles. Robinhood will warn you if this is about to happen.
Selling partial positions and whole positions
You do not have to sell all of your shares in a stock at once. When you tap the sell button, Robinhood asks how many shares you want to sell. You can enter any number from one share up to the total you own. This lets you sell part of your position and keep the rest, which is useful if you want to take some profit but stay invested in the stock.
If you sell all your shares, that stock disappears from your portfolio. If you sell only some, the remaining shares stay in your account and you can see them listed with the updated quantity. Either way, the process is the same — you just enter the number of shares you want to move.
Understanding capital gains and taxes
When you sell a stock for more than you paid for it, you have a capital gain. The IRS requires you to report this gain on your tax return, and you will owe tax on it. Robinhood does not automatically withhold this tax — you are responsible for setting aside money to pay it 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 is taxed as a short-term capital gain at your ordinary income tax rate. If you held it for more than one year, it is taxed as a long-term capital gain at a lower rate (0%, 15%, or 20%, depending on your income). At the end of the year, Robinhood sends you a tax document (Form 1099-B) that shows all your sales and the gains or losses.
If you sell a stock for less than you paid, you have a capital loss, which can offset capital gains from other stocks and reduce your tax bill.
Selling stocks you bought on margin
If you used margin (borrowed money from Robinhood) to buy a stock, selling that stock pays back the margin loan first. For example, if you borrowed $500 to buy a stock and then sell it for $700, the $500 goes back to Robinhood and you keep $200. You still owe interest on the margin you borrowed, which Robinhood charges daily.
Selling margin stocks works the same way as selling regular stocks — you just tap sell and enter the number of shares. The difference is in what happens to the proceeds. If you are carrying a margin balance, it is usually better to sell and pay down the loan rather than let the interest accumulate.
Frequently Asked Questions
Can I sell a stock immediately after I buy it?
Yes. There is no holding period on Robinhood. You can buy a stock and sell it seconds later if you want. However, if you buy and sell the same stock multiple times in a five-day period, you may trigger a pattern-day-trader rule that requires you to maintain a $25,000 account balance. Robinhood will warn you if you are close to this limit.
What if my sell order does not execute?
If you placed a limit order and the stock never reached your price, the order stays open until you cancel it or until market close (for day orders). If you placed a market order and it did not execute, contact Robinhood support — this is rare during regular market hours but can happen during extended hours if there are no buyers. You can cancel any open order at any time from your order history.
Do I pay a commission to sell on Robinhood?
No. Robinhood does not charge commissions on stock sales. You keep all the proceeds from your sale, minus any taxes you owe on gains. Some other brokers charge per-trade fees, but Robinhood does not.
Can I sell fractional shares?
Yes. If you own a fractional share (less than one full share), you can sell it just like a whole share. Enter the exact number in the shares field — Robinhood accepts decimals. Fractional shares settle and trade the same way as whole shares.