How to sell shares on Robinhood: US guide

Knowing when to lock in profits or cut losses is just as important as buying your first stock. When using platforms like Robinhood for the first time, selling your shares can feel intimidating.

In this step-by-step guide, we will walk you through exactly how to sell your shares on Robinhood, and explore different order types.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise US Inc. or its affiliates. It is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

How to sell shares on Robinhood?

Selling shares on Robinhood as a US-based individual is a straightforward process. You can do this either through the mobile app or on a desktop web browser.

Here are the step-by-step instructions for both methods¹:

Selling via the Robinhood mobile app

• Step 1 – Open the app and locate the stock: Launch the Robinhood app on your device. Tap the Search icon (magnifying glass) at the bottom to type in the company's name or ticker symbol, or select the stock directly from your Investing tab if you already own it
• Step 2 – Initiate the sale: Tap the stock to open its detail page, then tap the prominent Trade or Sell button in the bottom corner
• Step 3 – Choose your order type: Tap the dropdown menu in the top-right corner to select your order type. The default is usually a Market Order (sells immediately at the best available current price), but you can also choose a Limit Order (sells only if the stock reaches a specific price you set)
• Step 4 – Enter the amount: Decide whether you want to sell in Dollars (fractional shares) or Shares. Enter the amount you wish to sell
• Step 5 – Review and swipe to submit: Tap Review. Double-check the order details, total estimated credit, and order type. If everything looks correct, swipe up to submit and execute the sale

Selling via the Robinhood website (desktop)

• Step 1 – Navigate to the stock page: Log in to your account at Robinhood.com. Use the search bar at the top of the screen to find the stock, or click on it from your portfolio list on the right side of the dashboard
• Step 2 – Set up the sell order: Look at the order panel on the right side of the page. Click on the Sell tab (it will switch from the default "Buy" tab)
• Step 3 – Select order type and amount: Choose your preferred order type (e.g., Market Order or Limit Order) from the dropdown. Enter the number of shares or the dollar amount you want to sell
• Step 4 – Review and place the order: Click the Review Order button at the bottom of the panel. Review the transaction summary, then click Submit Sell to complete the trade

Important note on funds availability: Once your sale goes through, the cash will initially be "unsettled." Per standard US financial regulations, stock trades take 1 business day to settle ($T+1$).

While you can often use these funds immediately to buy other stocks within Robinhood, you will need to wait for the trade to officially settle before you can withdraw the cash to your linked bank account.

What are the different types of sell orders?

A market order executes your trade immediately at the best available current market price. These are simple but do not guarantee a specific price, especially during high volatility.

A limit order allows you to set the minimum price at which you are willing to sell. Your trade will only execute if the stock reaches your specified price.

Stop and stop-limit orders trigger a sale only when a stock hits a certain price level. Using market orders during periods of rapid price changes can lead to unexpected execution prices. Understanding these order types helps you maintain better control over your trades.

What are the tax implications of selling stocks?

Let’s talk about the key tax implications and features to keep in mind when selling stocks on the platform²:

1. Managing gains and losses with "Tax Lots"

Every time you buy shares, Robinhood records it as a "tax lot." This tracks exactly when you bought the shares, how many you bought, and your cost per share. When you go to sell a stock, Robinhood allows you to pick specific tax lots to sell. This is highly useful because it allows you to control and manage your capital gains (profits) or capital losses for tax purposes.

2. Short-term vs. long-term taxes

When you choose your tax lots, Robinhood displays whether the lot is considered short-term or long-term, which impacts how it is taxed by the IRS:

• Short-term (S): You have held the shares for 1 year or less
• Long-term (L): You have held the shares for more than 1 year

3. Default selling method (FIFO)

If you do not manually select specific tax lots to sell—or if your selected lots run out—Robinhood will default to the First-In-First-Out (FIFO) method. This means it will automatically sell the oldest shares you purchased first.

4. The "Wash Sale" rule

If you choose to sell specific lots at a loss for tax purposes, you need to be careful of "wash sales." If you trade the same security within 30 days before or after selling it at a loss, it may trigger a wash sale. The IRS prohibits taxpayers from claiming tax deductions on losses that result from wash sales.

5. App data is just an estimate

The cost per share, gains, and losses shown in the Robinhood app are just estimates and are subject to change. You cannot use the app's in-screen data directly for tax reporting. Instead, you must wait for your official end-of-year tax forms provided by Robinhood to file your taxes.

Disclaimer: This is not an official tax advice. For specific questions about your tax situation, it is recommended to consult with a tax professional.

Beyond the sale: managing your proceeds

After your trade executes, you must account for the settlement period. Robinhood typically operates on a T+1 settlement cycle, meaning the trade date plus one business day must pass before the cash is fully available for withdrawal ¹.

Once the funds settle, you can transfer them to your linked bank account. If you need to send these funds internationally or manage multiple currencies, consider the efficiency of your transfer method to avoid unnecessary fees.

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FAQs

Can I sell stocks after hours?

Yes, Robinhood allows you to place orders during extended hours, which includes pre-market and after-hours sessions ¹. These trades only execute if there is sufficient liquidity at your requested price.

How long does it take for money to be available to withdraw?

Once a trade executes, it enters a settlement period. Currently, most stocks in the US follow a T+1 cycle, meaning the funds are usually available to withdraw one business day after the trade ¹.

Conclusion

Managing your investment proceeds effectively is just as vital as the decision to sell on Robinhood. By choosing the right order type and being aware of your tax obligations, you can protect your returns and ensure your financial plan remains on track.

Once you have realized your gains, move your funds using the multi-currency account from Wise to avoid excessive conversion costs.

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Sources

1. Robinhood – How to sell a stock
2. Robinhood – Tax lots

Sources checked 06/26/2026