How to Sell Stock on Robinhood and Withdraw Your Cash
Selling stock on Robinhood takes three steps: tap the stock, select Sell, choose your price and quantity, then confirm
To sell a stock you own on Robinhood, open the app, find the stock in your portfolio, tap it, and select the Sell button. You then choose how many shares to sell and at what price — either at the current market price (a market order) or at a price you set yourself (a limit order). After you confirm, the sale executes, and the cash lands in your Robinhood account. Withdrawing that cash to your bank account is a separate step that takes one to three business days.
The process differs slightly depending on whether you want to sell immediately at today's price or wait for a specific price. It also matters whether you are selling during market hours (9:30 a.m. to 4 p.m. Eastern on weekdays) or after hours, since after-hours trades execute at different prices and with wider spreads between buy and sell prices.
Key Takeaways
- A market order sells your shares at the current price right away, while a limit order waits until the stock reaches the price you set.
- Selling during market hours (9:30 a.m. to 4 p.m. Eastern, weekdays) usually gives you tighter prices than selling after hours.
- Cash from a sale sits in your Robinhood account for one to three business days before you can transfer it to your bank.
- Robinhood charges no commission on stock sales, but the bid-ask spread (the gap between what buyers offer and sellers ask) is your real cost.
- If you sold a stock at a loss, you can deduct that loss on your taxes, but wash-sale rules prevent you from buying the same stock back within 30 days.
Market orders versus limit orders when selling
A market order sells your shares immediately at whatever price the market is offering right now. You tap Sell, choose Market Order, enter the number of shares, and hit Confirm. The trade executes within seconds during market hours. The downside is that you do not control the exact price — if the stock is moving fast, you might get a slightly worse price than you saw on screen.
A limit order lets you name the price you want. If you own shares of a stock trading at $50 and you want at least $52, you set a limit order at $52. The order sits in the market until someone buys at that price or higher, or until the order expires (usually at the end of the trading day). Limit orders give you control but no may provide — if the stock never reaches your price, the order never fills and you still own the shares.
For most people selling a small number of shares, a market order is simpler and executes immediately. Use a limit order when you are selling a large block and want to avoid moving the price against yourself, or when you have a specific price target in mind and can wait.
Selling during market hours versus after hours
Robinhood lets you trade during extended hours — from 4 a.m. to 9:30 a.m. before the market opens and from 4 p.m. to 8 p.m. after it closes. However, after-hours trading is riskier and more expensive. Fewer buyers and sellers are active, so the spread between the bid (what buyers offer) and the ask (what sellers want) widens. A stock might trade at $50 during the day but have a $49.50 bid and $50.50 ask after hours — meaning you get less if you sell.
If you can wait until the regular market opens at 9:30 a.m. Eastern, you will almost always get a better price. The only reason to sell after hours is if you need the cash urgently or if news breaks after the close and you want to exit before the next morning.
How to transfer cash from Robinhood to your bank account
After your stock sale settles, the cash appears in your Robinhood account as buying power. To move it to your bank, tap the Account icon (usually at the bottom right), select Transfers, then choose Transfer to Your Bank. Enter the amount and select the bank account you linked when you opened your Robinhood account.
Robinhood processes the transfer within one to three business days. Weekends and holidays do not count as business days, so a transfer requested on Friday afternoon might not land until Wednesday. There is no fee for transfers out, but your bank might charge a fee on their end (most do not).
If you have not yet linked a bank account, you will need to do that first. Robinhood asks for your routing number and account number, which you can find on a check or by logging into your bank's website. The link usually takes one business day to verify.
Understanding settlement and when your cash is available
When you sell a stock, the trade settles two business days later. That means if you sell on Monday, the cash is officially yours on Wednesday. Robinhood shows the cash in your account immediately for buying power (you can use it to buy other stocks right away), but you cannot withdraw it to your bank until settlement is complete.
This two-day settlement window is set by the Securities and Exchange Commission, not by Robinhood. It applies to all brokers. If you sell on a Friday, settlement happens on Tuesday, and you can transfer to your bank on Tuesday or later.
If you try to withdraw before settlement, Robinhood will reject the transfer. The app will show you the settlement date when you initiate the sale, so you know when the cash will be available.
Tax implications of selling stock
When you sell a stock for more than you paid, you owe capital gains tax on the profit. If you held the stock for more than one year, it is taxed as a long-term capital gain, usually at a lower rate than ordinary income. If you held it for one year or less, it is a short-term capital gain, taxed as ordinary income.
Robinhood sends you a Form 1099-B at tax time listing all your sales. You will need this to file your taxes. If you sold at a loss, you can deduct that loss against other gains or up to $3,000 of ordinary income in a single year.
Be aware of the wash-sale rule: if you sell a stock at a loss, you cannot buy the same stock (or a substantially identical one) within 30 days before or after the sale. If you do, the loss is disallowed for tax purposes. This rule exists to prevent people from harvesting losses for tax breaks while keeping the same investment.
What happens if you sell during a market crash or gap
If the market is falling fast and you place a market order to sell, your order might execute at a price lower than what you saw on screen. This is called slippage. During extreme volatility, the gap between the price you see and the price you get can be several percent. A limit order protects you here — you set the lowest price you will accept, and the order only fills at that price or better.
If a stock gaps down overnight (opens much lower than it closed), a market order will sell at the new, lower price. A limit order set at yesterday's closing price will not fill. There is no perfect answer — market orders may provide execution but not price, while limit orders may provide price but not execution.
Frequently Asked Questions
Can I sell a stock I just bought?
Yes. Robinhood has no holding period — you can buy and sell the same stock in the same day. However, if you buy and sell stocks frequently (more than four times in five business days), Robinhood may flag your account as a pattern day trader, which triggers additional rules and account minimums. Check Robinhood's day trading rules before you trade frequently.
What if I sell a stock but the order does not fill?
If you placed a limit order and the stock never reached your price, the order expires at the end of the trading day and the shares remain in your account. You can place a new order the next day or switch to a market order to sell immediately. Market orders almost always fill during market hours.
Do I pay taxes on the sale right away?
No. You pay taxes when you file your tax return the following year. Robinhood reports the sale to the IRS on Form 1099-B, and you report it on your tax return. You do not owe anything immediately after the sale.
Can I cancel a sale after I confirm it?
Once a market order is confirmed, it executes within seconds and cannot be cancelled. If you placed a limit order that has not filled yet, you can cancel it before it fills. After it fills, the sale is final.
Why is my sale price different from the price I saw on screen?
Stock prices move constantly, and there is a delay between what you see on your phone and the actual market price. If you used a market order, you sold at the price the market was offering when your order reached the exchange, which may be different from what your screen showed. A limit order prevents this by setting a minimum price you will accept.