Understanding how to sell stocks on Robinhood is important if you are new to platform. Robinhood offers a variety of sell orders to allow users to quickly sell stock or sell them with greater control. These include market orders, stop and limit orders, as well fast market orders. Before you begin to sell stocks on Robinhood review your tax situation. Robinhood uses the "first in, first out" (FIFO), method to calculate tax basis and cost basis. This means that your oldest purchases are sold before you buy newer shares.
This method is especially beneficial to long-term investors, as it minimizes taxes in the future. When selling stock, you should also consider the price at which you want to sell it. Market orders are one way to sell your stock at the current market price. This method is fast, but it may also result in you selling your shares for less than what you originally paid. So, let’s begin and learn more about it.
What are the different Types of Sell Orders on Robinhood?
You can choose between several different types of orders when selling stocks through Robinhood:
- Market Order: The market order stocks on Robinhood are sold immediately at the current price. If you want to sell stocks and do not know the exact price this can be helpful.
- Limit Order: When a stock reaches the stop price, a stop order will trigger a market order. This order type is used to minimize losses or protect profits.
- Stop Limit Orders: A stop limit order is like a stop, but it triggers a limit when the stock reaches a certain price. This order allows you to have more control over your selling price, but it may not be executed if the limit is not met.
When to Sell Stocks on Robinhood?
Below mentioned are the tips on when to sell stocks on Robinhood:
- Sell stocks once they reach a price target, or when you have achieved your investment goal.
- Sell stocks when the financial health of a company is declining or when you are concerned about its future growth.
- When the market is down and you want to take advantage of upswing.
How to Sell Stocks on Robinhood?
If you want to sell stocks on Robinhood, you need to follow the steps mentioned below:
- Open the Robinhood App on your tablet or phone.
- Click on the "Accounts" section in the lower right corner of your screen.
- Click the "Trade button" once you are in the stock detail page.
- Here you will see a menu with two options, "Buy" or "Sell".
- Click on the "Sell." And select the type of order you wish to place.
- Enter the number you wish to sell. You can choose to sell your entire stock or a part of it.
- Ate last check all the details before you “Submit”
How to Short Sell on Robinhood?
Robinhood does not directly support short selling but it does offer options trading that can be used as a strategy to simulate short-selling. Options trading is a more advanced way to short-sell on Robinhood. It is recommended that only experienced traders attempt this.
FAQ
How do I cash out my stocks on Robinhood?
If you want to cash out stocks on Robinhood, you first sell it.
How to transfer stocks from Robinhood to Fidelity?
To transfer stocks from Robinhood to Fidelity, you need to use the Automated Customer Account Transfer Service (ACATS).
How long does it take to sell stock on Robinhood?
If a market order has been placed during trading, a stock sale will typically be executed immediately at the current market price. Settlement of the sale typically takes two business day (T+2).
How much does it cost to sell stock on Robinhood?
You don’t need to pay any charges for selling stocks on Robinhood.