Robinhood has revolutionized the world of trading and investing. Launched in 2013, this user-friendly platform has made it easier than ever for the average person to buy and sell stocks. But how long does it take to sell stock on Robinhood? In this comprehensive guide, we’ll explore the factors that can impact this process, as well as give you step-by-step instructions on how to do it.
The Basics: How Robinhood Works
Before diving into the nitty-gritty of selling stocks, it’s important to understand how the platform functions. Robinhood is a commission-free trading app that allows you to buy and sell stocks, ETFs, options, and cryptocurrencies. Users can access the platform through the app or the website, and the process for buying and selling stocks is quite simple.
How Long Does It Take to Sell Stock on Robinhood? The Short Answer
In most cases, selling stock on Robinhood is nearly instantaneous. When you initiate a sell order, the app sends your request to a market maker, who then executes the transaction at the current market price. This process typically takes only a few seconds.
Market Hours and Trading on Robinhood
Regular Market Hours
To better understand the time it takes to sell stock on Robinhood, you must be aware of market hours. Regular market hours in the United States are from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday (excluding market holidays). Robinhood users can only execute trades during these hours.
Extended Trading Hours
Robinhood also offers extended trading hours for its Gold members. This means that Gold users can trade from 9:00 AM to 6:00 PM Eastern Time. Keep in mind that trading during extended hours may result in slower execution times and wider bid-ask spreads.
Step-By-Step: Selling Stock on Robinhood
Now that we’ve covered the basics, let’s go through the steps to sell stock on Robinhood.
Step 1: Open the App or Website
First, open the Robinhood app on your mobile device or log in to your account on the Robinhood website.
Step 2: Locate Your Investment
Next, navigate to the stock you want to sell. You can do this by searching for the stock’s ticker symbol or finding it in your portfolio.
Step 3: Choose ‘Sell’
Once you’ve found the stock, tap the ‘Trade’ button, then select ‘Sell’ to initiate the selling process.
Step 4: Select Order Type
You’ll then need to choose the type of sell order you want to place. Robinhood offers three types of sell orders: market, limit, and stop loss.
A market order sells your stock at the current market price. This type of order is the fastest and most straightforward but may result in a slightly different price than what’s displayed due to market fluctuations.
A limit order allows you to specify the minimum price at which you’re willing to sell your stock. This type of order may take longer to execute if the stock price doesn’t reach your desired limit.
Stop Loss Order
A stop loss order turns into a market order once the stock price reaches a specified level. This type of order is typically used to protect against significant losses by automatically selling if the stock price drops to a certain point.
Step 5: Enter Order Details
After selecting the order type, you’ll need to enter the number of shares you want to sell and any additional details related to your chosen order type (e.g., limit price).
Step 6: Review and Submit
Review the details of your sell order to ensure everything is correct. Once you’re satisfied, tap ‘Submit’ to initiate the sale.
Step 7: Order Confirmation
After submitting your sell order, you should receive an order confirmation. This will show you the details of your transaction, including the number of shares sold and the price per share.
Factors That Can Impact Selling Time on Robinhood
While selling stock on Robinhood is generally quick and easy, certain factors can impact the time it takes for your order to execute.
During periods of high market volatility, stock prices can fluctuate rapidly. This can affect the time it takes for your order to execute, particularly if you’re using a limit or stop loss order.
If a stock is experiencing unusually high trading volume, it may take longer for your sell order to be processed. In such cases, be prepared to wait a bit longer for your order to execute.
As mentioned earlier, the type of sell order you place can also impact how long it takes to sell your stock. Market orders are generally the fastest, while limit and stop loss orders may take longer, depending on market conditions.
Selling Stock and Settlement Times: What You Need to Know
Once you’ve successfully sold your stock, the funds from the sale will be subject to a settlement period. This is the time it takes for the transaction to be completed and for the funds to become available in your Robinhood account.
The T+2 Rule
The standard settlement period for stock trades is two business days, referred to as T+2. This means that the funds from your stock sale will typically be available for withdrawal or reinvestment two business days after the trade date.
How Long Does It Take to Withdraw Funds from Robinhood?
After your funds have settled, you may want to withdraw them from your Robinhood account. The withdrawal process is relatively straightforward, but it’s important to note that there is a waiting period before you can access your money.
Initiating a Withdrawal
To initiate a withdrawal, navigate to your account settings and select ‘Transfer.’ Enter the amount you want to withdraw and confirm the transaction.
Withdrawals from Robinhood typically take 1-3 business days to process. Keep in mind that weekends and holidays can cause delays, so plan accordingly.
In Summary: Selling Stock on Robinhood
Selling stock on Robinhood is a fast and easy process, with most transactions completing in just a few seconds. However, factors such as market volatility, order volume, and order type can impact the time it takes for your order to execute. Once your stock is sold, the funds will be subject to a two-business-day settlement period. After that, you can withdraw your funds, which typically takes 1-3 business days to process.
By understanding the ins and outs of selling stock on Robinhood, you’ll be well-equipped to make informed decisions and manage your investments with confidence.
FAQs | How Long Does It Take to Sell Stock on Robinhood?
Q1: How long does it take to sell stock and get money on Robinhood?
A1: Selling stock on Robinhood typically takes a few seconds, but the funds from the sale are subject to a two-business-day settlement period (T+2). After the settlement period, the funds are available in your account.
Q2: How long after I sell my stocks on Robinhood can I withdraw money?
A2: After selling your stocks, you must wait for the two-business-day settlement period. Once the funds have settled, you can initiate a withdrawal, which usually takes 1-3 business days to process.
Q3: How long do you have to sell on Robinhood?
A3: You can sell your stocks on Robinhood at any time during regular market hours (9:30 AM to 4:00 PM Eastern Time) or during extended trading hours for Gold members (9:00 AM to 6:00 PM Eastern Time).
Q4: How long does selling a stock take?
A4: Selling a stock on Robinhood usually takes only a few seconds. However, factors like market volatility, order volume, and order type can affect the execution time.