When you sell stocks on Robinhood, the process involves several steps before the money from your sale becomes available for withdrawal. Understanding these steps can help you know what to expect and when you can access your funds.
The Settlement Period
In the stock market, the sale of stocks involves a “settlement period,” which is the time it takes for the transaction to be completed and the funds to be available. For stocks, this period is typically two business days after the trade date, known as T+2 (Trade date plus two days). Here’s what happens during this period:
1. Trade Execution: When you place a sell order, the trade is executed at the current market price.
2. Settlement Period: It takes two business days for the trade to settle. During this time, the funds are not yet available for withdrawal.
3. Funds Availability: After the settlement period, the funds from the sale are credited to your Robinhood account.
Robinhood Account Balances
Once the settlement period is over, the proceeds from your stock sale will reflect in your Robinhood account balance. There are a couple of balances you need to be aware of:
1. Buying Power: This is the amount available for you to use to make additional trades. It includes settled funds and any margin (if applicable).
2. Withdrawable Cash: This is the amount that you can transfer out of Robinhood to your bank account. It includes settled funds only.
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Withdrawing Your Money
After your funds have settled and are reflected in your withdrawable cash balance, you can transfer the money to your linked bank account. Here’s how you can do it:
1. Go to Your Account: Open the Robinhood app and navigate to your account.
2. Select Transfers: Choose the option to transfer to your bank.
3. Enter Amount: Specify the amount you want to withdraw.
4. Confirm Transfer: Review the details and confirm the transfer.
Transfers to your bank account can take 1-3 business days to complete, depending on your bank’s processing times.
Potential Delays and Issues
While the process is generally straightforward, there can be a few reasons why you might not see your money immediately:
1. Pending Transactions: If you have pending transactions or unsettled trades, your funds will not be available for withdrawal.
2. Account Restrictions: Any restrictions on your account, such as account verification issues or holds due to suspicious activity, can delay access to your funds.
3. Bank Processing Times: Once Robinhood processes the transfer, it can take additional time for your bank to make the funds available in your account.
Contacting Support
If you experience delays or issues beyond the expected processing times, it’s advisable to contact Robinhood support. They can provide specific details about your account and any potential issues affecting your withdrawal.
Conclude
When you sell stocks on Robinhood, your money goes through a settlement period of two business days. After this period, the funds become available in your account balance as withdrawable cash. You can then transfer this money to your bank account, which may take an additional 1-3 business days. Understanding these steps can help you manage your expectations and ensure smooth access to your funds. If you encounter any issues, contacting Robinhood support is the best course of action.
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