How to Sell Stock on Robinhood and Transfer to Bank

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Selling stock on Robinhood and transferring your money to your bank account is a straightforward process, but it’s important to understand the steps involved. Whether you’re selling specific shares, looking to cash out entirely, or even closing your Robinhood account, this guide will walk you through the process, including how to short sell and handle options trading on Robinhood.

How to Sell Specific Shares on Robinhood

When it comes to selling stock on Robinhood, you can choose to sell specific shares or liquidate your entire position. Here’s how to sell specific shares on the platform.

Steps to Sell Specific Shares on Robinhood:

1. Log In to Your Robinhood Account: Open the Robinhood app or access the desktop version through a browser. Make sure your app is up to date for smooth functionality.
2. Navigate to Your Portfolio: On the homepage, you’ll see a list of all the stocks you own. Scroll through and select the stock you want to sell.
3. Select Sell: Once you’ve chosen the stock, click on the "Sell" button.
4. Specify the Number of Shares: Instead of selling all shares, you can enter the exact number of shares you wish to sell. Robinhood gives you flexibility here by allowing partial or complete sales.
5. Choose Order Type: You can select from various order types, such as a market order, which sells at the current price, or a limit order, which sells when the stock reaches a specific price.
6. Confirm Your Sale: Review the order details and confirm the transaction. Your sale will execute during market hours or during extended hours trading if applicable.

Once you have completed the sale, the money will appear as buying power in your Robinhood account, which you can later transfer to your bank.

How to Sell Stock on Robinhood and Cash Out

Cashing out on Robinhood means selling your stock and transferring the proceeds to your bank account. This process involves two key steps: selling the stock and withdrawing the funds.

Steps to Sell Stock and Cash Out:

1. Sell Your Stock: Follow the steps outlined above to sell specific shares or your entire position in a stock.
2. Settlement Period: After you sell stock, the proceeds will be reflected in your account immediately as buying power. However, the funds won’t be available for withdrawal until the transaction settles, which takes two business days (T+2).
3. Withdraw Funds to Your Bank: Once the settlement period is over, you can transfer the money to your bank. Here’s how:

• Go to the Account Tab (bottom right of the app).
• Select Transfers.
• Choose Transfer to Your Bank.
• Enter the amount you wish to withdraw and select your linked bank account.
• Confirm the transfer.

The transfer typically takes 3-5 business days to complete, depending on your bank.

How to Sell Robinhood Stock and Close Your Account

If you no longer wish to use Robinhood and want to close your account, it’s essential to first sell all your stocks and withdraw your funds. Here’s how to go about it.

Steps to Sell All Stocks and Close Your Account:

1. Sell All Your Stocks: Start by selling all the stocks you hold. You can follow the same process described earlier in this article for each individual stock in your portfolio.
2. Withdraw Your Funds: Once all your stocks are sold and the transactions settle, withdraw all remaining funds to your bank account as explained above.
3. Close Your Robinhood Account: To permanently close your account:

• Open the Account Tab and go to Settings.
• Scroll down and click on Deactivate Account.
• Follow the on-screen prompts to ensure all your funds are withdrawn and your account is empty.
• Confirm the deactivation.

Once you’ve closed the account, you won’t be able to make any more trades or access the platform unless you open a new account.

How to Short Sell on Robinhood

Currently, Robinhood does not offer traditional short selling, where you borrow shares to sell them and buy them back later at a lower price. However, Robinhood does offer access to inverse ETFs and put options, which allow you to profit when stock prices decline.

Alternative Methods to Short Sell on Robinhood:

1. Inverse ETFs: Inverse ETFs are designed to move in the opposite direction of the underlying index or sector. For example, if you believe the market will decline, you can purchase shares of an inverse ETF. When the market falls, the ETF rises in value, allowing you to profit from the drop.
2. Put Options: With options trading on Robinhood, you can buy put options, which increase in value when the stock price declines. A put option gives you the right to sell a stock at a certain price before a specific expiration date. If the stock price falls below the strike price, you can exercise the option for a profit.

Keep in mind that trading inverse ETFs and options carries significant risk, especially if you’re unfamiliar with these financial instruments. Make sure to do your research before proceeding.

Selling Options on Robinhood

If you’ve traded options on Robinhood and want to sell your contracts, the process is similar to selling stocks but with a few important differences. Here’s how to sell options on Robinhood.

Steps to Sell Options on Robinhood:

1. Go to Your Portfolio: Open Robinhood and navigate to your portfolio where your open options contracts are listed.
2. Select the Option: Click on the specific options contract you want to sell. You will see the contract details, including its current value and expiration date.
3. Choose to Sell to Close: On the options screen, select Sell and then choose Sell to Close. This action allows you to sell the contract back into the market and close out your position.
4. Select the Number of Contracts: If you have multiple contracts, choose how many you want to sell. You can sell part of your position or all of it.
5. Confirm Your Sale: Review the order and confirm it. The proceeds will appear in your account as buying power.

Options Expiration

If you do not sell or exercise your options before the expiration date, the contract will either expire worthless (if out-of-the-money) or be automatically exercised (if in-the-money). Always keep track of expiration dates to avoid unintended outcomes.

Key Points to Remember When Selling Stock on Robinhood

• Settlement Period: After selling a stock, it takes two business days for the transaction to fully settle, at which point you can withdraw your funds.
• Withdrawal Time: Transfers to your bank typically take 3-5 business days, so plan accordingly if you need the funds by a specific date.
• Market Hours: Robinhood allows trading during regular hours (9:30 AM to 4:00 PM ET) and extended hours (9:00 AM to 9:30 AM ET and 4:00 PM to 6:00 PM ET). Be aware of potential price fluctuations during extended hours due to lower liquidity.
• Taxes: Selling stocks may trigger capital gains taxes. Keep track of your trades and ensure your account for any tax liabilities when selling stocks on Robinhood.