You've decided it's time to close a trade on E*TRADE! Whether you're taking profits, cutting losses, or rebalancing your portfolio, knowing how to execute this crucial step effectively is paramount. Let's walk through the process together, ensuring you feel confident and in control of your investments.
Mastering Your Exit: A Step-by-Step Guide to Closing a Trade on E*TRADE
Closing a trade on E*TRADE is a fundamental skill for any investor. It involves placing a "sell" order for a security you currently hold. The process is generally straightforward, but understanding the nuances of order types and market conditions can significantly impact your outcome.
Step 1: Log In and Access Your Portfolio – Let's Get Started!
First things first, let's get you into your E*TRADE account.
Open your web browser or the ETRADE mobile app*: Navigate to the ETRADE website (etrade.com) or launch the ETRADE mobile app on your smartphone or tablet.
Enter your User ID and Password: Carefully input your credentials. Remember, security is key, so make sure you're on a legitimate E*TRADE platform.
Navigate to your Portfolio or Accounts tab: Once logged in, look for a section typically labeled "Portfolio," "Accounts," or "My Accounts." This is where you'll see all your current holdings. Take a moment to review your positions. Identify the specific security (stock, ETF, option, etc.) you wish to sell.
Step 2: Locate the Trade Action – Your Path to Selling
Now that you're in your portfolio, it's time to initiate the sale.
Find the specific security you want to sell: Scroll through your holdings until you find the investment you intend to close.
Look for the "Sell" or "Trade" option: Next to the security, you'll typically find an action button. This might be a "Sell" button directly, or you might need to click a "Trade" button first, which will then give you options like "Buy" or "Sell."
Click "Sell": This will take you to the order entry screen, where you'll define the parameters of your sale.
Step 3: Configure Your Sell Order – Precision is Power
This is where you tell E*TRADE exactly how you want your trade to be executed. This step is critical, as the type of order you choose can drastically affect the price you receive and how quickly your order is filled.
Sub-heading: Understanding Order Types
E*TRADE offers various order types to suit different trading strategies. Here are the most common ones you'll encounter when selling:
Market Order:
What it is: A market order instructs E*TRADE to sell your shares immediately at the best available price in the market.
When to use it: Ideal when speed of execution is your top priority, and you are comfortable with the prevailing market price. This is often used for highly liquid stocks where price fluctuations are minimal.
Important Note: While a market order guarantees execution, it does not guarantee a specific price. In fast-moving markets or for thinly traded securities, the executed price might differ slightly from the last quoted price you saw.
Limit Order:
What it is: A limit order allows you to specify a minimum price you are willing to accept for your shares. Your order will only execute if the market price reaches your specified limit price or higher.
When to use it: Perfect when you want to control the selling price and are willing to wait for the market to reach your desired level. This is useful for volatile stocks or when you're looking to capture a specific profit target.
Important Note: A limit order does not guarantee execution. If the market price never reaches your limit, your order will not be filled.
Stop Order (or Stop-Loss Order):
What it is: A stop order is an order to sell a stock once its price reaches a specified "stop price." Once the stop price is triggered, it becomes a market order.
When to use it: Primarily used to limit potential losses on a position. If the stock price falls to your stop price, it will automatically trigger a market order to sell.
Important Note: Because it converts to a market order, the actual execution price may be lower than your stop price, especially in a rapidly declining market. This is known as "slippage."
Stop-Limit Order:
What it is: A stop-limit order combines features of both stop and limit orders. You set a "stop price" and a "limit price." When the stock reaches your stop price, it triggers a limit order (rather than a market order) at your specified limit price.
When to use it: Provides more price control than a traditional stop order, as it won't execute below your specified limit price. Useful for protecting against significant slippage in volatile conditions.
Important Note: Like a regular limit order, a stop-limit order does not guarantee execution. If the price drops below your limit price too quickly after the stop is triggered, your order may not be filled.
Sub-heading: Filling in the Order Details
On the E*TRADE order entry screen, you'll need to specify:
Action: Ensure this is set to "Sell."
Quantity: Enter the number of shares or contracts you wish to sell. You can choose to sell a partial amount or your entire position.
Order Type: Select the order type that best suits your strategy (Market, Limit, Stop, Stop-Limit).
Price (for Limit/Stop/Stop-Limit orders): If you selected a limit or stop order, enter your desired price.
Time in Force: This determines how long your order remains active if it's not immediately filled. Common options include:
Day: The order is active only for the current trading day. If not filled by market close, it expires.
Good 'Til Canceled (GTC): The order remains active for an extended period (typically 60 days on E*TRADE, but check their current policy) unless it's filled or you cancel it manually.
Other options: You might see "Immediate or Cancel (IOC)" or "Fill or Kill (FOK)" for more advanced scenarios, especially in options trading.
Step 4: Review and Confirm – Your Last Checkpoint
Before you hit that final button, always meticulously review your order details.
Double-check everything:
Is it a Sell order?
Is the correct stock symbol selected?
Is the quantity accurate?
Have you chosen the right order type?
If applicable, is the price set correctly?
Is the Time in Force as you intended?
Review estimated commissions/fees: E*TRADE generally offers $0 commissions for online US-listed stock, ETF, and options trades. However, there might be regulatory or exchange fees, or charges for other types of securities (like OTC stocks or futures). The order preview will usually show any applicable costs.
Click "Preview Order" or "Review Trade": This will usually display a summary of your order.
Click "Place Order" or "Confirm Trade": Once you are absolutely certain all details are correct, click the final confirmation button to send your order to the market.
Step 5: Monitor Your Order – Staying Informed
After placing your order, it's essential to monitor its status.
Check "Order Status" or "Activity": E*TRADE platforms typically have a section where you can view your open, pending, and executed orders.
Wait for execution:
For Market Orders, execution is usually very quick.
For Limit or Stop orders, you'll need to wait to see if your specified conditions are met.
Receive confirmation: Once your order is filled (executed), you'll receive a confirmation. This usually includes the execution price and the total value of the sale.
Step 6: Understanding Settlement – When Your Funds Are Ready
It's important to understand that once your sell order executes, the funds aren't immediately available for withdrawal.
Settlement Period: Stock trades generally settle on a T+1 basis, meaning the trade date plus one business day. For example, if you sell shares on a Monday, the funds will typically settle and be available for withdrawal on Tuesday.
Availability of Funds: Once settled, the funds will appear in your E*TRADE account's cash balance and can then be withdrawn to your linked bank account or used to place new trades.
10 Related FAQ Questions: How to Close a Trade on E*TRADE
How to: Close a Trade on the E*TRADE Mobile App?
Simply log in, navigate to your portfolio, tap the security you wish to sell, then tap "Trade" and "Sell." Follow the on-screen prompts similar to the web platform for selecting order type, quantity, and confirming.
How to: Sell Only a Portion of My Shares on E*TRADE?
When you're on the order entry screen, simply enter the specific number of shares you want to sell in the "Quantity" field, rather than the total number of shares you hold.
How to: Cancel an Open Sell Order on E*TRADE?
Go to your "Order Status" or "Activity" section on the E*TRADE platform. Locate the open order you wish to cancel and click the "Cancel" button next to it. Be aware that if a market order is already executing, you may not be able to cancel it.
How to: See My Trade History on E*TRADE?
You can typically find your trade history under "Accounts" or "Portfolio" and then looking for "Activity," "History," or "Transactions." This will show you all your past buy and sell orders.
How to: Know if My E*TRADE Sell Order Was Filled?
You'll receive a confirmation on the platform or app, often accompanied by an email notification. You can also check your "Order Status" section, where executed orders will show as "Filled."
How to: Sell Options on E*TRADE?
Selling options works very similarly to selling stocks. Go to your portfolio, select the options contract, choose "Sell to Close" (if you bought to open) or "Buy to Cover" (if you sold to open), specify the quantity and order type, then review and confirm.
How to: Understand E*TRADE's Trading Hours for Selling?
E*TRADE allows trading during standard U.S. market hours (typically 9:30 AM to 4:00 PM ET, Monday to Friday). They also offer extended-hours trading (pre-market and after-hours), but liquidity can be lower and prices more volatile during these times.
How to: Calculate Potential Gains/Losses Before Selling on E*TRADE?
While ETRADE's platform often displays unrealized gains/losses, for a precise calculation, you subtract your original purchase price (including commissions, if any) from the current market price, then multiply by the number of shares. ETRADE will show you the estimated proceeds before you confirm your sell order.
How to: Sell My Entire E*TRADE Account to Close It?
To close an entire ETRADE account, you must first sell all your assets and withdraw all cash. Then, you'll need to formally initiate the account closing procedure, which may involve contacting ETRADE customer service.
How to: Contact E*TRADE Customer Service for Help Closing a Trade?
You can contact E*TRADE customer service via phone (typically available during market hours and often extended hours), email, or sometimes via live chat on their website. Look for the "Contact Us" or "Help" section on their platform for specific contact details.
