72
ajay verma

How Can i Sell Stocks on Robinhood?

If you are beginner in investing and looking to navigate Robinhood's process for selling stocks, you have come to the right place. Selling stocks can be integral to your investment journey; learning the ropes of selling is paramount to its success. Please continue reading to learn how to sell stock on Robinhood, including order types, fees, settlement times, after-hours trading. Moreover, you will also get to learn the essential tips and advice to make selling stocks on Robinhood successful and seamless.

 

Understanding the Selling Process on Robinhood:

Let us first get a clear understanding of how Robinhood's stock-selling platform works. Executing a sell order, which is giving instructions to Robinhood about selling shares at a specific price, and then the platform tries to match your sell order with buyers on the market and complete the sale. You need to take the below mentioned to sell your stock on Robinhood:

·       Launching the Robinhood app onto your device is the first step to use Robinhood successfully.

·       To review your investments, tap "Portfolio".

·       From your portfolio of holdings, locate and select the stock that you wish to sell.

·       To initiate, tap on the "Sell" button on a stock's detail page.

·       Choose either a Market order (selling immediately at current price) or a Limit order (setting specific pricing parameters).

·       Indicate how many shares you wish to sell.

·       Choose how long the order should remain active.

·       To double-check details and place order, double-tap "Review" or "Place Order."

·       Once your sell order has been submitted, you will receive confirmation.

·       Keep tabs on the status of your orders by using our "Orders" section.

 

Types of Sell Orders

A market order is the most accessible form of order. This instructs Robinhood to sell your shares instantly at the current market price - though due to fluctuations, execution prices may differ slightly from their respective current market prices.

With a limit order, you can set a specific selling price at which you are willing to sell shares, and it will only be executed if or when the market reaches or surpasses it - giving more control over selling prices but potentially leading to non-execution if the market does not get it.

 

Are There Fees When Selling Stocks on Robinhood?

Robinhood offers commission-free trades, which means selling stocks does not incur any additional trading costs or fees; however, you should note there may be regulatory or exchange fees that apply, but these should usually be minimal.

 

How long does it take for my stock sale to settle on Robinhood?

After successfully selling stocks on Robinhood, the settlement process starts. In general, stocks settle within two business days (T+2). During this period, funds from your sale become available for withdrawal or investment elsewhere - it is essential to be mindful of this waiting time in case you plan to use these funds immediately.

 

Can I sell stocks during after-hours trading sessions on Robinhood?

Yes. Robinhood allows users to trade stocks during after-hours sessions before and after market opening/closing hours. The rules and risks for extended trading hours differ significantly as liquidity tends to be reduced and could impact execution prices; before making your decision about this form of selling, it is recommended that you understand its dynamics beforehand.

 

Timing Your Robinhood Sell:

Timing plays a critical role when you sell shares on Robinhood. While no one can accurately predict market movements, taking into consideration several vital factors may help you make informed decisions:

·       Assess market sentiment and trends before selling shares at their maximum potential price. Selling during an upswing might yield greater returns for your holdings.

·       Keep tabs on any significant announcements related to the stock you are selling, as positive developments could drive up prices while negative ones could cause them to drop.

·       To predict stock market movements effectively, look at broad economic indicators that could have an effect. Interest rates, inflation rates, and GDP growth all play a part.

 

TIPS for Successful Selling on Robinhood:

Now you have learnt how to sell stocks in Robinhood, you must know the tips before doing so:

·       Before selling, ensure you have done enough research into the company, its performance, industry trends, and any recent developments.

·       Strive for excellence while striving for the best price is natural, setting more reasonable selling prices that reflect current market conditions can help ensure missed opportunities are not wasted.

·       Selling stocks is an opportunity to rebalance your portfolio and achieve long-term investment goals. When making selling decisions, consider your long-term objectives when selling.

·       Market fluctuations are normal. Instead of making hasty decisions based on short-term volatility, take your time in making decisions based on long-term planning and patience.

·       Stop orders are an invaluable way of mitigating risk in volatile markets, protecting from unexpected losses by automatically placing sell orders when stock prices reach certain thresholds.

·       Selling stocks may have tax implications in your jurisdiction. Before selling any stock, get acquainted with local rules and implications.

·       Make it a practice to regularly evaluate your investment portfolio and selling strategy, as your goals and market conditions may change over time.

FAQ

1. How do I sell stocks on Robinhood?

To sell stocks on Robinhood, follow these steps:

·       Open the Robinhood app and log in to your account.

·       Tap on the "Investing" icon at the bottom of the screen.

·       Select the stock you want to sell from your portfolio.

·       Tap on the "Sell" button.

·       Choose the type of sell order you want (Market, Limit, Stop, or Stop Limit).

·       Enter the quantity of shares you want to sell.

·       Set the price (if applicable) based on the order type chosen.

·       Review your order details and tap "Review" or "Place Order" to confirm the sale.

 

2. What's the difference between Market and Limit orders?

A Market order is executed immediately at the current market price. A Limit order, on the other hand, allows you to set a specific price at which you're willing to sell. The trade will only execute if the market reaches your specified price.

 

3. Can I cancel a sell order on Robinhood?

Yes, you can cancel a sell order before it's executed. Go to your order history, find the pending sell order, and select the option to cancel it.

 

4. Are there any fees for selling stocks on Robinhood?

As of my last update in September 2021, Robinhood doesn't charge commission fees for trading stocks. However, be aware of potential regulatory and exchange fees that may apply. Check the Robinhood website or app for the most current fee information.

 

5. What is a Stop order?

A Stop order becomes a market order to sell when the stock's price reaches a specified "stop price." This is designed to protect you from significant losses by triggering a sale if the stock's value drops to the specified level.

 

6. What is a Stop Limit order?

A Stop Limit order is similar to a Stop order, but it also includes a "limit price." When the stock hits the stop price, it triggers a limit order to sell at or above the limit price you've set.

 

7. How long does it take for a stock sale to settle?

Typically, stock trades settle in two business days. This means the funds from the sale will be available for withdrawal or further trading after that period.

 

8. Can I sell fractional shares on Robinhood?

Yes, Robinhood allows you to sell fractional shares, which can be helpful if you only own a fraction of a share in a company.

 

9. What happens if I sell a stock at a loss?

Selling a stock at a loss means you've incurred a capital loss. Depending on tax regulations and your overall financial situation, you might be able to use this loss to offset capital gains and reduce your taxable income.

 

10. How do I access the funds after selling stocks?

Once your stock sale settles (usually within two business days), the funds will be available in your Robinhood account. You can withdraw them to your linked bank account or use them for further investing.

 


Related Articles