Have you decided it's time to cash in on some of your investments with ETRADE? Whether you're rebalancing your portfolio, taking profits, or simply need the funds, selling stocks can feel a bit daunting if you're not familiar with the process. But don't worry, ETRADE's platform is designed to make it as straightforward as possible. Let's walk through it together, step-by-step!
A Comprehensive Guide: How to Sell Stocks in E*TRADE
Selling stocks isn't just about clicking a button; it involves understanding market dynamics, order types, and potential tax implications. This guide will break down each step to ensure you feel confident and informed throughout the process.
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| How To Sell Stocks In Etrade |
Step 1: Log In and Get Your Bearings – Engage Your Inner Investor!
Before you do anything else, you need to access your E*TRADE account.
Accessing the Platform: Open your web browser and go to the official ETRADE website (etrade.com). You can also use the ETRADE mobile app if you prefer trading on the go.
Secure Login: Enter your User ID and Password. E*TRADE places a high emphasis on security, so you might encounter multi-factor authentication, such as a code sent to your phone or email. This extra step ensures your account remains secure.
Navigating the Dashboard: Once logged in, you'll land on your account dashboard. Take a moment to familiarize yourself with the layout. You'll typically see an overview of your portfolio, account balances, recent activity, and various navigation tabs like "Accounts," "Trading," "Research," and "Transfers."
Step 2: Identify the Stock You Wish to Sell
Now that you're in, it's time to pinpoint the specific stock you want to sell.
Locating Your Holdings: Navigate to the "Accounts" or "Portfolio" section. Here, you'll find a detailed list of all your current holdings, including stocks, ETFs, mutual funds, and more.
Selecting the Stock: Browse through your holdings to find the particular stock you intend to sell. Double-check the ticker symbol and company name to ensure you're selecting the correct one. A small error here can lead to unintended trades!
Step 3: Initiate the Sell Order
With the desired stock identified, it's time to start the selling process.
Tip: Every word counts — don’t skip too much.
Clicking "Trade" or "Sell": Next to the stock you've chosen, there will typically be a "Trade" or "Sell" button or link. Click on this to open the order entry screen.
Confirming the Action: On the order entry screen, make sure "Sell" is selected as the action. It's crucial to confirm this as the default might sometimes be "Buy."
Step 4: Choose Your Order Type – Understanding Your Options
This is a critical step where you define how and when your shares will be sold. E*TRADE offers several order types, each suited for different scenarios.
Market Order:
What it is: A market order instructs E*TRADE to sell your shares immediately at the best available current market price.
When to use it: If you prioritize immediate execution and are comfortable with the prevailing market price, even if it fluctuates slightly. This is common when you want to get out of a position quickly.
Consideration: While typically executed quickly, the final price might be slightly different from the last quoted price, especially in volatile markets.
Limit Order:
What it is: A limit order allows you to set a specific minimum price at which you are willing to sell your shares. Your order will only be executed if the stock's price reaches or exceeds your specified limit price.
When to use it: If you want to ensure you sell at a certain profit target or prevent selling below a desired price. It gives you more control over the execution price.
Consideration: There's no guarantee your order will be filled if the stock never reaches your limit price.
Stop Order (Stop-Loss):
What it is: A stop order (often called a stop-loss order when selling) is designed to limit potential losses. You set a "stop price." If the stock's price falls to or below this stop price, your stop order becomes a market order and is executed at the best available price.
When to use it: To protect against significant downside movements. It acts as a safety net.
Consideration: Once triggered, it becomes a market order, so the actual execution price might be lower than your stop price, especially in fast-moving markets (this is known as "slippage").
Stop-Limit Order:
What it is: This combines features of both stop and limit orders. You set a "stop price" (trigger) and a "limit price" (execution). When the stock reaches your stop price, a limit order is triggered at your specified limit price.
When to use it: To limit potential losses while also maintaining some control over the execution price.
Consideration: If the stock falls rapidly past your limit price after the stop is triggered, your order might not be filled.
Step 5: Enter the Details of Your Order
Once you've selected your order type, you'll need to provide the specifics.
Quantity of Shares: Enter the exact number of shares you wish to sell. Be very careful with this step to avoid selling more or fewer shares than intended.
Price (for Limit/Stop-Limit Orders): If you chose a limit or stop-limit order, enter your desired limit price (the minimum price you're willing to accept).
Time in Force (TIF): This specifies how long your order will remain active. Common options include:
Day: The order is active only for the current trading day and expires if not filled by market close. This is typically the default.
Good-Til-Canceled (GTC): The order remains active until it's filled or you manually cancel it. E*TRADE usually has a limit on how long GTC orders remain active (e.g., 60 days), after which they expire.
Immediate or Cancel (IOC): Any portion of the order that can be filled immediately is filled; the rest is canceled.
Fill or Kill (FOK): The entire order must be filled immediately, or it's canceled.
Step 6: Review and Confirm Your Order – The Final Check!
This is arguably the most crucial step. Never skip this part.
Summary Review: E*TRADE will display a comprehensive summary of your order. Carefully review every detail:
Action: Sell
Ticker Symbol: Correct stock?
Company Name: Correct company?
Quantity: Correct number of shares?
Order Type: Is it what you intended (Market, Limit, Stop, Stop-Limit)?
Price: Is the limit or stop price correct?
Time in Force: Is it set appropriately?
Estimated Commission/Fees: E*TRADE offers $0 commission for online U.S.-listed stock trades, but it's good to be aware of any potential regulatory or other fees that might apply (though these are usually small).
Confirming the Trade: If everything looks correct, click the "Place Order" or "Confirm Trade" button. Once confirmed, your order will be sent to the market for execution.
Step 7: Monitor Your Order and Account Activity
After placing your order, it's a good idea to keep an eye on its status.
Tip: Reading with intent makes content stick.
Order Status: You can usually check the status of your order in the "Order Status" or "Activity" section of your E*TRADE account.
Confirmation: Once your order is filled (executed), you'll receive a confirmation. This usually happens very quickly for market orders, while limit and stop orders may take time or not fill at all.
Account Update: Your portfolio will be updated to reflect the sale, and the cash proceeds from the sale will appear in your E*TRADE brokerage account.
Step 8: Understanding Settlement and Accessing Funds
Selling a stock isn't instantaneous in terms of fund availability.
Settlement Period: Stock trades typically "settle" in T+2 business days. This means that the funds from your sale won't be fully available for withdrawal until two business days after the trade execution date. For example, if you sell on Monday, the funds will usually settle by Wednesday.
Withdrawing Funds: Once the funds have settled, you can initiate a transfer to a linked bank account.
Navigate to the "Transfers" or "Move Money" section.
Select "Transfer Money" or "External Transfer."
Choose your E*TRADE account as the "From" account and your linked bank account as the "To" account.
Enter the amount you wish to transfer.
Review and confirm the transfer details.
Transfer Time: Electronic transfers (ACH) from E*TRADE to your bank account typically take 1-3 business days to appear in your bank. Wire transfers are faster but usually incur a fee.
Important Considerations When Selling Stocks
Tax Implications: Selling stocks can trigger capital gains or losses, which have tax implications.
Short-term capital gains: If you held the stock for one year or less, profits are generally taxed at your ordinary income tax rate.
Long-term capital gains: If you held the stock for more than one year, profits are typically taxed at lower, more favorable long-term capital gains rates.
Consult a Tax Professional: It's always advisable to consult with a tax advisor to understand the specific tax implications for your situation. E*TRADE will provide tax documents (like Form 1099-B) that summarize your sales activity for tax reporting.
Fees: While E*TRADE generally offers $0 commission for online U.S.-listed stock trades, be aware of potential regulatory fees (very small) or fees for broker-assisted trades. OTC (Over-the-Counter) stocks may also have different fee structures.
Market Conditions: Volatile markets can impact execution prices, especially for market orders. Consider using limit orders in such conditions if you have a specific price in mind.
Investment Strategy: Always remember your original investment goals and strategy when deciding to sell. Is this sale aligned with your overall financial plan?
Frequently Asked Questions (FAQs)
Here are 10 common questions about selling stocks on E*TRADE, starting with 'How to', and their quick answers:
How to check the status of my sell order on E*TRADE?
You can check the status of your sell order by navigating to the "Order Status" or "Activity" section within your E*TRADE account dashboard.
QuickTip: Reading carefully once is better than rushing twice.
How to link my bank account to E*TRADE for withdrawals?
To link your bank account, go to the "Transfers" or "Move Money" section, then select "Add a Bank Account." You'll need to enter your bank's routing and account numbers, and E*TRADE will usually send small test deposits for verification.
How to know if my stock sale has settled on E*TRADE?
Funds from stock sales typically settle in T+2 business days. You can usually see the "settled cash" balance in your account overview, or check the transaction details for the specific sale.
How to avoid selling below my desired price on E*TRADE?
To avoid selling below a desired price, use a limit order and set your minimum acceptable selling price. The order will only execute at that price or higher.
How to sell a partial amount of my stock holdings on E*TRADE?
When placing a sell order, simply enter the specific number of shares you wish to sell, rather than selecting "sell all."
Note: Skipping ahead? Don’t miss the middle sections.
How to cancel a pending sell order on E*TRADE?
Go to your "Order Status" or "Activity" section, find the pending order, and there should be an option to "Cancel" it. Note that market orders often execute too quickly to be canceled.
How to calculate capital gains or losses after selling stock on E*TRADE?
Capital gains/losses are calculated by subtracting your cost basis (original purchase price plus any commissions) from the selling price. E*TRADE provides year-end tax documents (like Form 1099-B) that summarize this information.
How to get a tax document for my stock sales from E*TRADE?
E*TRADE provides tax documents such as Form 1099-B, which details your sales and cost basis. These are typically available in the "Documents" or "Tax Center" section of your account early each tax year.
How to sell stocks during extended hours on E*TRADE?
E*TRADE allows trading during extended hours. When placing an order, look for an option to specify "Extended Hours" or "Pre-Market/After-Hours" trading. Only limit orders are typically allowed during these sessions.
How to contact E*TRADE customer service if I have issues selling stocks?
You can typically find E*TRADE's customer service contact information (phone numbers, live chat, email) in the "Contact Us" or "Help" section of their website or mobile app.
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