How to Place a Stop Loss Order on Robinhood

Setting a stop loss order on Robinhood in four steps

A stop loss order tells Robinhood to sell a stock automatically when its price drops to a level you set in advance. You place it through the same trade window where you would normally sell, by selecting "Stop Loss" from the order type menu, entering your stop price, and confirming. 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, which may be lower than your stop price.

Stop loss orders do not lock in a price. They trigger a sale, but the actual sale price depends on how fast the stock is falling and how many other sellers are ahead of you. If a stock gaps down sharply at market open, your stop loss may sell at a price well below where you set it.

Key Takeaways

• Stop loss orders on Robinhood convert to market sells when triggered, so the final price is not may provide and may be significantly lower than your stop price.
• You enter a stop loss order by opening a position, tapping the sell icon, choosing "Stop Loss" as the order type, and setting your stop price before confirming.
• Stop loss orders remain active until the stock price reaches your stop level, the order is cancelled, or the stock is delisted.
• Robinhood does not charge a commission for stop loss orders, but the order type is available only for stocks, not for options or crypto.

How to place a stop loss order step by step

Open the Robinhood app and navigate to the stock you own. Tap the sell icon (usually a downward arrow or a minus sign, depending on your app version). The order entry screen will show several order type options at the top: "Market," "Limit," and "Stop Loss." Tap "Stop Loss."

Enter the stop price — the price at which you want the sale to trigger. This must be lower than the current stock price. Robinhood will show you how many shares you own and let you choose to sell all of them or a specific number. Review the order summary, which will show your stop price and the number of shares, then tap "Submit Order" or "Confirm" depending on your app version.

Once submitted, the order appears in your "Orders" tab as "Pending." It remains there until the stock price touches or falls below your stop price, at which point Robinhood automatically converts it to a market order and executes the sale. You will receive a notification when the order fills.

The difference between stop loss and stop limit orders

Robinhood offers two types of orders that use a trigger price: stop loss and stop limit. A stop loss order becomes a market order when triggered, meaning it will sell at whatever price the market offers at that moment. A stop limit order becomes a limit order, which means it will sell only at your specified limit price or better — but it may not sell at all if the stock falls past your limit price without anyone buying at that price.

Stop loss is simpler and guarantees a sale once triggered, but the price may be worse than expected. Stop limit gives you price control but risks leaving you holding a falling stock if the price gaps past your limit. For most investors, stop loss is the more straightforward choice when the goal is to exit a position quickly.

When your stop loss order will not execute

A stop loss order will not trigger if the stock price never reaches your stop level. If you set a stop at $45 and the stock stays at $50 or higher, the order sits indefinitely until you cancel it or the stock is delisted. The order does not expire at the end of the trading day — it remains active until you manually cancel it or market conditions change.

Stop loss orders also do not work during after-hours trading on Robinhood. If a stock falls sharply in the evening or early morning before the market opens, your stop loss will not trigger until regular market hours begin. This is a significant gap for investors who hold stocks that move heavily on news released outside trading hours.

What happens when a stop loss order triggers

When the stock price touches or falls below your stop price during regular market hours, Robinhood immediately converts your stop loss order into a market sell order. This market order goes to the exchange and executes at the best available price at that moment. In a fast-moving market, this price can be substantially lower than your stop price, especially if many other investors have set stop losses at the same level.

You will see the filled order in your order history with the actual execution price. The proceeds are credited to your Robinhood cash balance, and the shares are removed from your holdings. If you had set up any other pending orders for that stock, they remain active unless you cancel them.

Robinhood stop loss order fees and limits

Robinhood does not charge a commission or fee to place a stop loss order. There is no cost to set it up, and no cost when it executes. However, stop loss orders are available only for stocks — you cannot use them on options, exchange-traded funds (ETFs), or cryptocurrencies on Robinhood.

Robinhood also does not publish a minimum or maximum number of stop loss orders you can place at once, but placing dozens of overlapping orders on the same stock is impractical and defeats the purpose of the tool. Most investors place one stop loss per position they want to protect.

Common mistakes to avoid with stop loss orders

Setting your stop price too close to the current price is the most common mistake. If a stock is at $50 and you set a stop at $49, normal daily volatility may trigger the order on a routine dip, selling you out of a position you intended to hold. A stop loss works best when set at a price that reflects a real change in your investment thesis, not just normal noise.

Forgetting to cancel old stop loss orders is another frequent problem. If you change your mind about exiting a position or the stock recovers, the stop loss order is still active and waiting. Check your "Orders" tab regularly and cancel any stops you no longer want.

Assuming your stop loss price is may provide is the third major mistake. Your stop loss may trigger at $45, but if the stock is falling fast, you may sell at $43 or lower. Use stop loss to manage risk, not to lock in a specific price — use a stop limit order if price certainty matters more than execution certainty.

Frequently Asked Questions

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

No. You must own the stock before you can place a stop loss order on it. Stop loss orders are for selling positions you already hold. If you want to sell short (bet that a stock will fall), Robinhood has different requirements and order types that do not include stop loss.

What if my stop loss order does not fill before the market closes?

The order remains active and carries over to the next trading day. It will trigger as soon as the stock price reaches your stop level during regular market hours. If you want to cancel it, go to your "Orders" tab and tap the X next to the pending order.

Does Robinhood allow stop loss orders during pre-market and after-hours trading?

No. Stop loss orders only work during regular market hours (9:30 a.m. to 4 p.m. Eastern Time). If a stock falls sharply in after-hours trading, your stop loss will not trigger until the next regular market open.

Can I change the stop price on an existing stop loss order?

No. You must cancel the existing order and place a new one with the new stop price. Go to your "Orders" tab, cancel the old stop loss, then place a fresh order with your updated stop level.

What is the difference between a stop loss and a trailing stop?

Robinhood does not offer trailing stop orders. A trailing stop would automatically adjust your stop price as the stock rises, locking in gains. You can only set a fixed stop price on Robinhood, which stays at the same level until you change it or it triggers.