Robinhood FAQs

Options let you choose your investment strategy and make profitable investments in different market conditions.

Buying a Call

Why Buy a Call

Buying a call is similar to buying stock. You want the price of the stock to go up, making your option worth more, so you can profit.

Why would I buy a call?

When buying a call you’re paying for the option to purchase stock. Since an option is typically for 100 shares of a stock, you’re able to pay less money with the opportunity for higher returns.

How do I make money from buying a call?

After buying, your portfolio value will include this option and its price will change similar to the way a stock’s price changes, meaning its value can go up or down.

You can either sell the option itself for a profit, or wait until expiration to exercise it and buy 100 shares of the stock at the stated strike price per share.

What are the risks?

Once you buy an option, its value goes up and down with the value of the underlying stock. If the stock’s value doesn’t go up enough, your call may expire worthless. However, you’ll never lose more than the price you paid to buy the call.

How risky is each call?

The riskier a call is, the higher the reward will be if your prediction is accurate.

A call option with an expiration date that is further away is less risky because there is more time for the stock to increase in value.

For buying calls, higher strike prices are also typically riskier because the stock will need to go up more in value to be profitable.

High Risk, Short Term: Best if you have a strong, short term belief that the stock will go up.

Medium Risk, Medium Term:Best if you expect the stock to steadily climb higher over the next couple of months.

Low Risk, Long Term:Best if you have a long term belief in the stock. Considered a cheaper way to buy 100 shares.

Choosing a Call

Robinhood provides a lot of information that can help you pick the right call to buy. Here are some things to consider:

Break-Even price

The break-even price is the price a stock needs to reach when your contract expires so that you don’t lose money on your investment. Your break-even point is the strike price plus the price you paid for the option.

Strike price

The strike price is the fixed price that you’ll pay per share if you choose to exercise your option and buy the 100 shares. You want the stock price to go above the strike price so you can buy the stock for less than what it's currently trading at.

How do I choose the right strike price?

You should be confident that the stock will at least reach the break-even price between now and the time of expiration. Generally, a higher strike price is cheaper, but you’re at a higher risk of the option becoming worthless. A lower strike price is more expensive, but you’re at a lower risk of losing your money.

Expiration date

Unlike stocks, option contracts expire. When you buy a call, the expiration date impacts the value of the option contract because it sets the timeframe for when you can choose to sell, or exercise your call option. If a contract is not sold or exercised by expiration, it expires worthless.

How do I choose the right expiration date?

The further away the expiration date is, the more money you’ll pay for the contract, but the more time the stock has to reach your break-even price.

Monitoring a Call

How does my option affect my portfolio value?

Buying an option is a lot like buying a stock. You can sell it for a profit, or a loss depending on what’s happening in the market. Either way, it will be part of your total portfolio value.

Where can I monitor it?

You can monitor your option on your homescreen, just like you would with any stocks in your portfolio.

What’s the difference between selling and exercising?

Selling

Selling a call option lets you collect a return based on what the option contract is worth at the time you sell. If the contract is worth more than when you bought it, you’ll make money. If it’s worth less than when you bought it, you’ll lose money.

Why would I sell?

The main reason people sell their call option is to profit off the increased value of 100 shares of stock without ever needing to buy the stock in the first place.

Exercising

When you exercise a call option you get to buy the 100 shares of stock at the agreed strike price regardless of the stock’s current market value.

Why would I exercise?

You’d exercise because you’d want to keep the stocks in your portfolio after the option expires.

Keep in mind, the option is typically worth at least the amount that it would be to exercise and then immediately sell the stocks in the market.

What happens if the stock goes past the break-even price?

Before Expiration

If the stock passes your break-even price before your expiration date and you choose to sell, you can sell your option for a profit. However, even if the stock doesn’t pass your break-even price, you can still profit from selling the option itself if it’s worth more than when you bought it.

At Expiration

If the stock passes your break-even price at expiration, you can sell the option and keep the profits, or exercise the option to buy the stocks at a lower price than they’re currently worth.

What happens if the stock goes past the strike price?

If your option is past the stated strike price, it’s considered to be “in the money.”

Example

If you buy an option for stock XYZ at a $10.00 strike price and the stock is trading in the market at $13.00, you’re in the money. This is because you have the ability to buy the stock at $10.00, but you can immediately sell the stock for $13.00, making a $3.00 profit per share.

Can I exercise my call before expiration?

Yes. However, it’s generally more advantageous to sell your option back to the market rather than early exercise. If you wish to early exercise, you can email our customer support team.

Can I sell my call before expiration?

Yes. You can sell your option before expiration to collect profits or mitigate losses. You can do this the same way you’d sell stock:

Tap the option on your home screen.

Tap Trade.

Tap Sell.

Calls at Expiration

What happens at expiration when my stock is near or above the strike price?

If your stock is above or near the strike price at expiration, we’ll automatically exercise or sell it for you, so you don’t need to worry about checking the app.

If you have enough money to buy the shares

We’ll automatically exercise the option and purchase the shares at the stated strike price.

If you don’t have enough money to buy the shares

We’ll automatically sell the option back to the market a few hours before market close so you can recover the market value of the call option.

Generally, the call option will be worth at least as much as buying the stock at the stated strike price and immediately selling it in the market.

What happens at expiration when my stock is below the strike price?

If your stock doesn’t rise above your strike price by expiration, it’s considered to be out of the money. If your option isn’t sold back to the market, it will simply expire and you’ll lose the entire amount that you paid for the contract, but nothing more.

Buying a Put

Why Buy a Put

Buying a put is similar to shorting a stock. When buying a put, you want the price of the stock to go down, which will make your option worth more, so you can make a profit.

Why would I buy a put?

You’d buy a put because you’re able to make a profit on a stock going down. You’re able to do this by paying for the option to sell 100 shares of stock at a certain price. If the price of the stock goes below that price, you can sell it for more than it’s worth.

How do I make money from buying a put?

After buying, your portfolio value will include this option and its price will change similar to the way a stock’s price changes, meaning its value can go up or down.

You can either sell the option itself for a profit, or wait until expiration to exercise it and sell 100 shares of the stock at the stated strike price per share.

What are the risks?

Once you buy an option, its value goes up and down with the value of the underlying stock. If the stock’s value doesn’t go down enough, your put may expire worthless. However, you’ll never lose more than the price you paid to buy the put.

How risky is each put?

The riskier a put is, the higher the reward will be if your prediction is accurate.

A put option with an expiration dates that is further away is less risky because there is more time for the stock to decrease in value.

For buying puts, lower strike prices are also typically riskier because the stock will need to go down more in value to be profitable.

High Risk, Short Term:Best if you have a strong, short term belief that the stock will go down.

Medium Risk, Medium Term:Best if you expect the stock to steadily fall lower over the next couple of months.

Low Risk, Long Term:Best if you have a long term belief that the stock will go down.

Choosing a Put

Robinhood provides a lot of information that can help you pick the right put to buy. Here are some things to consider:

Break-Even price

The break-even price is the price a stock needs to fall to before your contract expires so that you don’t lose money on your investment. Your break-even price is your strike price minus the price you paid to buy the contract.

Strike price

The strike price is the fixed price that you’ll receive per share if you choose to exercise your option and sell the 100 shares. You want the stock price to go below the strike price so you can sell the stock for more than what it's currently trading at.

How do I choose the right strike price?

You should be confident that the stock will at least reach the break-even price between now and the time of expiration.Generally, a higher strike price is more expensive, but you’re at a lower risk of losing your money. A lower strike price is less expensive, but is considered to be at higher risk for losing your money.

Expiration date

Unlike stocks, option contracts expire. When you buy a put, the expiration date impacts the value of the option contract because it sets the timeframe for when you can choose to sell, or exercise your put option. If a contract is not sold or exercised by expiration, it expires worthless.

How do I choose the right expiration date?

The further away the expiration date is, the more money you’ll pay for the contract, but the more time the stock has to fall below your break-even price.

Monitoring a Put

How does my option affect my portfolio value?

Buying a put is a lot like buying a stock in how it affects your portfolio value. You can sell it for a profit, or a loss depending on what’s happening in the market. Either way, it will be part of your total portfolio value.

Where can I monitor it?

You can monitor your option on your homescreen, just like you would with any stocks in your portfolio.

What’s the difference between selling and exercising?

Selling

Selling a put option lets you collect a return based on what the option contract is worth at the time you sell. If the contract is worth more than when you bought it, you’ll make money. If it’s worth less than when you bought it, you’ll lose money.

Why would I sell?

There are two main reasons people sell a put.

They don’t own the 100 shares of stock and want to collect a profit from selling the put itself.

They already own the 100 shares of stock and want to keep them.

Exercising

When you exercise a put option you get to sell 100 shares of the stock at the agreed strike price regardless of the stock’s current market value.

Why would I exercise?

You’d exercise because you’d want to sell the stocks in your portfolio when the option expires.

What happens if the stock goes past the break-even price?

Before Expiration

If the stock goes below your break-even price before your expiration date and you choose to sell your put option, you can sell it for a profit. However, even if the stock doesn’t go below your break-even price, you can still profit from selling the option itself if it’s worth more than when you bought it.

At Expiration

If the stock goes below your break-even price at expiration, you can sell the option and keep the profits, or exercise the option to sell the stocks at a higher price than they’re currently worth.

What happens if my stock stays below the strike price?

If your stock stays below the stated strike price, it’s considered to be “in the money.”

Example

If you buy a put option for stock XYZ at a strike price of $10.00, and the stock is trading in the market at $8.00 a share, you're in the money. This is because you have the ability to sell the stock at $10.00 a share, when it's currently trading in the market for $8.00 a share, making a $2.00 profit per share.

Can I exercise my put before expiration?

Yes. However, it’s generally more advantageous to sell your option back to the market rather than early exercise. If you wish to early exercise, you can email our customer support team.

Can I sell my put before expiration?

Yes. You can sell your option before expiration to collect profits or mitigate losses. You’d do this the same way you’d sell stock:

Tap the option on your homescreen

Tap Trade

Tap Sell

Puts at Expiration

What happens at expiration when my stock is near or below the strike price?

If your stock is below or near the strike price at expiration, we’ll automatically exercise or sell it for you, so you don’t need to worry about checking the app.

If you already own the shares

If you already own the 100 shares, we’ll automatically exercise it for you and sell your shares at the stated strike price.

If you don’t already own the shares

If you don’t already own the shares, we’ll automatically sell the option back to the market for you a few hours before market close.

Generally, the put option will be worth at least as much as buying the stock in the market and immediately selling it at the stated strike price per share.

What happens at expiration when my stock is above the strike price?

If your stock doesn’t fall below your strike price by expiration, it’s considered to be out of the money. If it’s not sold back to the market, it will simply expire and you’ll lose the entire amount that you paid for the contract, but nothing more.

Straddles and Strangles

Why Create a Straddle or Strangle

Straddles and strangles are great strategies if you expect a stock to move drastically up or down within a certain time period. With both of these strategies, you’re buying a call and buying a put at the same time.

Reminder: Buying Calls and Puts

Buying a call is similar to buying the stock. You want the price of the stock to go up, making your option worth more, so you can profit.

Buying a put is similar to shorting a stock. When buying a put, you want the price of the stock to go down, which will make your option worth more, so you can make a profit.

How are they different?

With a straddle, you’re buying a call and buying a put with the same strike price and same expiration date. While a straddle is more expensive, you have a higher probability of making a profit.

With a strangle, you’re buying a call and buying a put with different strike prices but with the same expiration date. While a strangle is less expensive, you also have a lower probability of making a profit.

Why would I buy a straddle or strangle?

Generally speaking, you want to buy a straddle or strangle if you believe there will be a drastic change in the price of a stock, but you don’t know if it will go up or down. If the price does move drastically enough in either direction, you’ll make a profit.

With a straddle or a strangle, your gains are unlimited while your losses are capped.

How do I make money?

With both a straddle and a strangle, your gains are unlimited. If the stock moves drastically up or down, you’ll make a profit.

Reminder: Making Money on Calls and Puts

For your call, you can either sell the option itself for a profit or wait until expiration to exercise it and buy 100 shares of the stock at the stated strike price per share.

For your put, you can either sell the option itself for a profit or wait until expiration to exercise it and sell 100 shares of the stock at the stated strike price per share.

Is this the right strategy?

When deciding if you should buy a straddle or strangle, you may want to consider if there are any major events coming up that may cause a drastic increase or decrease in the underlying stock’s value.

For example, is the company releasing a new, exciting product? Is there an upcoming earnings call?

What are the risks?

Your max loss is the premium you pay for both of the options.

Once you buy a straddle or a strangle its value goes up and down with the value of the underlying stock. If the stock’s value is in between or at your strike price at expiration, the straddle or strangle will expire worthless.

However, you’ll never lose more than the price you paid to buy the straddle or strangle.

Choosing a Straddle or Strangle

Break-Even price

The break-even price is the price a stock needs to reach before your contract expires so that you don’t lose money on your investment. For straddles and strangles, you have two break-even prices, one if the stock goes up and one if the stock goes down.

If the stock goes up

This break-even price is calculated by taking the call strike price and adding the price you paid for both the call and the put.

If the stock goes down

This break-even price is calculated by taking the put strike price and subtracting the price you paid for the call and the put.

Example

For example, let’s say you purchase a straddle with a $10 strike price for $2.00. The break-even price for the call would be $12.00, and the break-even price for the put would be $8.00.

Strike Price

The strike price is the price at which a contract can be exercised. For a strangle, you have one strike price for your call option and one strike price for your put option. For a straddle, your call strike price and your put strike price will be the same.

Call Strike Price

The call strike price is the price that you think the stock is going to go above. The higher the stock goes above this strike price plus the premium you paid to enter the position, the more money you’ll make.

Put Strike Price

The put strike price is the price that you think the stock is going to go below. The lower the stock goes below the strike price minus the premium you paid to enter the position, the more money you’ll make.

How do I choose the right strike prices?

Straddle Strike Price

Both legs of your straddle will have the same strike price. You want the strike price to be close to the stock’s current market price, with a goal that the price of the stock will move drastically in either direction away from this price.

Strangle Strike Price

Strangles have two different strike prices, one for each contract.

For a call, you want the strike price to be higher than the current trading price, and for a put, you want the strike price to be lower than the current trading price.

The further away your lower and higher strike prices are from the stock’s current market price, the cheaper the overall strategy will be, but the lower your probability of profit will be.

Expiration Dates

Unlike stocks, options contracts expire. The expiration date sets the timeframe for when you can choose to close or exercise your contracts.

How do I choose an expiration date?

The further away the expiration date is, the more money you’ll pay for the contract, but the more time the stock has to reach your break-even price.

Monitoring a Straddle or Strangle

How does buying a straddle or strangle affect my portfolio value?

Buying a straddle or a strangle is a lot like buying a stock. You can sell it for a profit or loss depending on what’s happening in the market. Either way, it’ll be part of your total portfolio value.

Where can I monitor it?

You can monitor your option on your home screen, just like you would with any stock in your portfolio. You can find information about your returns and average cost by tapping the position.

Can I close my straddle or strangle before expiration?

Yes! To close your position from your app:

Tap the option on your home screen.

Tap Trade.

Tap Close.

Why would I close?

The main reason people close their straddle or strangle is to lock in profits or avoid potential losses.

Can I exercise my straddle or strangle before expiration?

Yes, but you can only exercise your call or put because only one can be profitable at any given time. In order to do so, please reach out to our support team!

Above the High

If your stock is above the call’s strike price at expiration, we’ll automatically exercise or sell the contract for you, depending on if you have enough money to buy 100 shares of the underlying stock. You don’t need to worry about checking the app.

In Between the Call and Put

Depending on the price of the underlying stock your contracts make be exercised, sold, or expire worthless. If both of your options expire worthless, you’ll lose the maximum amount.

For a straddle, you’ll only lose the maximum amount if the stock expires at your exact strike price. Remember, in a straddle, your strike prices are the same.

Below the Low

If your stock is below the put’s strike price at expiration, we’ll automatically exercise or sell the contract for you, depending on if you have 100 shares to sell. You don’t need to worry about checking the app.

Call Credit Spreads

Why Create a Call Credit Spread

A call credit spread can be the right strategy if you think a stock will stay the same or go down within a certain time period. When you enter a call credit spread, you’re selling a call and buying a call. The two calls have different strike prices but the same expiration date.

When entering a call credit spread, you’ll always receive a premium from someone who wants the right to buy the underlying stock from you at the lower strike price.

How are the two calls different?

Selling a call is how you make a profit, and buying a call is meant to mitigate your losses if the stock suddenly goes up and you get assigned.

Reminder

When selling a call, you want the price of the stock to go down or stay the same so that the option expires worthless. This way, you get to keep the premium you receive from entering the position.

When buying a call, you want the price of the stock to go up, which will make your option worth more, so you can profit.

Why would I enter a call credit spread?

Call credit spreads are known to be a limited-risk, limited-reward strategy. This is because you’re capped at how much you can make or lose.

When you enter a call credit spread, the call you’re selling has a lower strike price than the call you’re buying.

Buying the call option with a higher strike price helps you offset the risk of selling the call option with the lower strike price.

How do I make money?

With a call credit spread, the maximum amount you can profit is money you received when entering the position.

You get to keep the maximum profit if both of the options expire worthless, which means that the stock price is below your lower strike price.

What are the risks?

Your potential for profit starts to go down once the underlying stock goes above your lower strike price. Once the underlying stock reaches or goes above your higher strike price, you’ll lose the maximum amount.

Your maximum loss is the difference between the two strike prices minus the premium received to enter the call credit spread.

Choosing a Call Credit Spread

Break-Even Price

When you enter a call credit spread, you receive the maximum profit in the form of a premium. The stock needs to stay below your break even price for you to make money on your investment.Once it goes above your break even price, you’ll start to lose money up until you reach the maximum loss.

Your break-even price is your lower strike price plus the premium you received when entering the position.

Strike Price

The strike price is the price at which a contract can be exercised. For a call credit spread, you have two different strike prices for each of your call options.

Low Strike Price

The lower strike price is the price that you think the stock will stay below. If the stock stays below this price, you’ll make the maximum profit.

High Strike Price

Once the stock reaches or goes past the higher strike price, you’ll lose the maximum amount.

How do I choose the right strike prices?

Low Strike Price

The lower this strike price is, the more likely the stock price is to be above it at expiration, but the more you’ll receive as a premium.

High Strike Price

The closer this strike price is to the lower strike price, the cheaper the overall strategy will be, but it will also limit your maximum loss.

Expiration Dates

Unlike stocks, options contracts expire. It sets the timeframe for when you can choose to close your position.

How do I choose an expiration date?

The further away the expiration date is, the more money you’ll get for entering the strategy, but the more time the stock has to reach your break even price.

Monitoring a Call Credit Spread

How does entering a call credit spread affect my portfolio value?

When you enter a call credit spread, your account is immediately credited the cash for the sale and this will be reflected in your portfolio value.

Since this is a credit strategy, you make money when the spread’s value goes down. Therefore, your portfolio will go up as the spread’s value goes down, and your portfolio will go down when the spread’s value goes up.

Where can I monitor it?

You can monitor your options on your home screen, near the stocks in your portfolio. You can find information about your returns and average cost by tapping the position.

Can I close my call credit spread before expiration?

Yes! To close your position from your app:

Tap the option on your home screen

Tap Trade

Tap Close

Why would I close my position?

The main reason people close their call credit spread is to lock in profits or avoid potential losses.

If there are only a few more dollars that you can make, it may make sense to close your position to guarantee a profit.

Can I exercise my call credit spread before expiration?

No. You don’t really have control in this strategy because it’s a net credit strategy which means that you’re selling options.

Can I get assigned before my contract expires?

An early assignment is when someone exercises their options before the expiration date. This could lead to you selling 100 shares of the stock. However, you have the other call option so you can buy those 100 shares at that contract’s strike price.

What happens at expiration when the stock goes...

Below the low strike price

If this is the case, you’ll keep the maximum profit. We’ll automatically let both options expire worthless, so you don’t need to worry about checking the app.

In between the two strike prices

If this is the case, we'll automatically close your position. Depending on whether you’re above or below your break even price you can still lose or make money.

Above the high strike price

If both calls are above the market price of the stock, it’s very likely that you’ll get assigned on the contract with the lower strike price. If this is the case, we’ll automatically exercise the contract with the higher strike price, and you’ll lose the maximum amount.

Keep in mind, if the stock price is close to either of your strike prices we’ll treat it as if it’s between your two strike prices.

Put Credit Spreads

Why Create a Put Credit Spread

A put credit spread is a great strategy if you think a stock will stay the same or go up within a certain time period. When you enter a put credit spread, you’re selling a put and buying a put. The two puts have different strike prices but the same expiration date.

When entering a put credit spread, you’ll always receive a premium from someone who wants the right to sell the underlying stock to you at the higher strike price.

How are the two puts different?

Selling a put is how you make a profit, and buying a put is meant to mitigate your losses if the stock suddenly goes down and you get assigned.

Reminder: Selling a Put

When you’re selling a put, you want the price to go up or stay the same so your option expires worthless and you get to keep the money you received when you entered the position.

Buying a put is similar to shorting a stock. When buying a put, you want the price of the stock to go down, which will make your option worth more, so you can make a profit.

Why would I enter a put credit spread?

Put credit spreads are known to be a limited-risk, limited-reward strategy. This is because you’re capped at how much you can make or lose.

When you enter a put credit spread, you’re agreeing to buy the underlying stock at a price that’s higher than its current market value, and also buying the right to sell the stock at a price that’s lower.

Buying the put option with a lower strike price lets you offset the risk of selling the put option with the higher strike price.

How do I make money?

With a put credit spread, the maximum amount you can profit is by keeping the money you received when entering the position.

You get to keep the maximum profit if both of the options expire worthless, which means that the stock price is above your higher strike price.

What are the risks?

Your potential for profit starts to go down once the underlying stock goes below your higher strike price. Once the underlying stock reaches or goes below your lower strike price, you’ll lose the maximum amount.

Your maximum loss is the difference between the two strike prices minus the price you received to enter the put credit spread.

Choosing a Put Credit Spread

Break-Even Price

When you enter a put credit spread, you receive the maximum profit in the form of a premium. The stock needs to stay above your break even price so that you don’t lose money on your investment.

Once it falls below your break even price, you’ll start to lose money up until you reach the maximum loss.

Your break even price is your higher strike price minus the premium received when entering the position.

Strike Price

The strike price is the price at which a contract can be exercised. With a put credit spread, you’ll have one strike price for each of your put options.

High Strike Price

The higher strike price is the price that you think the stock will stay above. If the stock stays above this price, you’ll make the maximum profit.

Low Strike Price

Once the stock reaches or goes past this point, you’ll lose the maximum amount.

How do I choose the right strike prices?

High Strike Price

The higher this strike price is, the more you’ll receive as a premium but the more likely the stock price is to be below it at expiration.

Low Strike Price

The closer this strike price is to the higher strike price, the more expensive the overall strategy will be, but it will also limit your maximum gain.

Expiration Dates

Unlike stocks, options contracts expire. It sets the timeframe for when you can choose to close your position.

How do I choose an expiration date?

The further away the expiration date is, the more money you’ll get for entering the strategy, but the more time the stock has to reach your break even price.

Monitoring a Put Credit Spread

How does entering a put credit spread affect my portfolio value?

When you enter a put credit spread, your account is immediately credited the cash for the sale and this will be reflected in your portfolio value.

Since this is a credit strategy, you make money when the spread’s value goes down. Therefore, your portfolio will go up as the spread’s value goes down, and your portfolio will go down when the spread’s value goes up.

Where can I monitor it?

You can monitor your options on your home screen, just like you would with any stocks in your portfolio. You can find information about your returns and average cost by tapping the position.

Can I close my put credit spread before expiration?

Yes! To close your position from your app:

Tap the option on your home screen.

Tap Trade.

Tap Close.

Why would I close?

The main reason people close their put credit spread is to lock in profits or avoid potential losses.

If there are only a few more dollars that you can make, it may make sense to close your position to guarantee a profit.

Can I exercise my put credit spread before expiration?

No. You don’t really have control in this strategy because it’s a net credit strategy which means that you’re selling options.

Can I get assigned before my contract expires?

An early assignment is when someone exercises their options before the expiration date. This is rare but could lead to you buying 100 shares of the stock. However, you have the other put option so you can sell those 100 shares at that contract’s strike price.

What happens at expiration when the stock goes...

Above the High

If this is the case, you’ll keep the maximum profit. We’ll automatically let both options expire worthless, so you don’t need to worry about checking the app.

In Between the Two

If this is the case, we'll automatically close your position. Depending on whether you’re above or below your break even price, you can still make or lose money.

Below the Low

If both puts are above the market price of the stock, it’s very likely that you’ll get assigned on the contract with the higher strike price. If this is the case, we’ll automatically exercise the contract with the lower strike price, and you’ll lose the maximum amount.

Keep in mind, if the stock price is close to either of your strike prices, we’ll treat it as if it’s between your two strike prices.

Call Debit Spreads

Why Create a Call Debit Spread

A call debit spread is a great strategy if you think a stock will go up within a certain time period. When you enter a call debit spread, you’re buying a call and selling a call. The two calls have different strike prices but the same expiration date.

When entering a call debit spread, you’ll always pay a premium to someone who is giving you the right to buy the underlying stock at the lower strike price, and you also receive a premium for agreeing to sell the underlying stock if you get assigned.

How are the calls different?

The call with the lower strike price is what you’re hoping to profit off of, and the call with the higher strike price is what helps mitigate potential losses.

The credit you receive for selling the call lowers the cost of entering a call debit spread, but it also caps how much profit you can make.

Reminder

Buying a call is similar to buying stock. When buying a call, you want the price of the stock to go up, which will make your option worth more, so you can profit.

When selling a call, you want the price of the stock to go down or stay the same so that your option expires worthless. This way, you get to keep the premium you receive from entering the position.

Why would I buy a call debit spread?

Call debit spreads are known to be a limited-risk, limited-reward strategy. This is because you’re capped at how much you can make or lose.

When you enter a call debit spread, you’re buying the right to buy stocks at a fixed price, and you’re also agreeing to sell them for an even higher fixed price if necessary.

Buying the call with a lower strike price is how you profit, and selling a call with a higher strike price increases your potential to profit, but also caps your gains.

How do I make money?

With a call debit spread, the maximum you can profit is the difference between the two strike prices, minus the premium you paid to enter the position.

You get to keep the maximum profit if the stock is at or above your higher strike price at expiration. If the stock passes your higher strike price, you’ll still only make the maximum amount.

What are the risks?

Typically, you’ll never lose more than the premium you paid to enter the call debit spread. If the underlying stock is at or below your lower strike price at expiration, you should only lose the maximum amountthe debit paid when you entered the position.

If this is the case, both options will expire worthless.

Choosing a Call Debit Spread

Break-Even price

The break even price is the price a stock needs to reach when your contract expires so that you don’t lose or make money on your investment.

Your break even price is the lower strike price plus the amount you paid to enter the call debit spread.

Strike Price

The strike price is the price at which a contract can be exercised. With a call debit spread, you’ll have one strike price for each of your call options.

Low Strike Price

The lower strike price is the price that you think the stock is going to go above. The more the stock rises above that strike price, the more money you’ll make until you reach your maximum profit.

High Strike Price

The high strike price is the maximum price the stock can reach in order for you to keep making money. Once the stock rises past this price, you’ll no longer profit.

How do I choose the right strike prices?

Low Strike Price

The lower this strike price is, the more likely the stock price is to be above it at expiration, but the more you’ll pay as a premium.

High Strike Price

The closer the higher strike price is to the lower strike price, the cheaper the overall strategy will be, but it will also limit your potential gain.

Expiration Date

Unlike stocks, options contracts expire. The expiration date sets the timeframe for when you can choose to close or exercise your contracts.

How do I choose an expiration date?

The further away the expiration date is, the more money you’ll pay for the call debit spread, but the more time the stock has to reach your break even price.

Monitoring a Call Debit Spread

How does a call debit spread affect my portfolio value?

After buying, your portfolio value will include your call debit spread, and its price will change similar to the way a stock’s price changes, meaning its value can go up or down.

Where can I monitor it?

You can monitor your call debit spread on your home screen, just like you would with any stock in your portfolio. You can find information about your returns and average cost by tapping the position.

Can I close my call debit spread before expiration?

Yes! To close your position from your app:

Tap the option on your home screen.

Tap Trade.

Tap Close.

Why would I close?

The main reason people close their call debit spread is to lock in profits or avoid potential losses.

If there are only a few more dollars that you can make, it may make sense to close your position and guarantee a profit.

Can I exercise my call option spread before expiration?

Not really. With a call debit spread, you only control one leg of your strategy. While unusual, you can technically exercise the option with the lower strike price and purchase 100 shares of the underlying stock.

Can I get assigned?

Technically, yes, but you don’t need to worry about this. If you get assigned, it guarantees your maximum profit.

What happens at expiration when the stock price goes:

Above the High

If this is the case, you’ll keep the maximum profit. We’ll automatically exercise your contract with the lower strike price.

In Between the Two

If this is the case, we'll automatically close your position. Depending on whether you’re above or below your break even price, you can still make or lose money.

Below the Low

We’ll let both of your options expire worthless, and you’ll lose the maximum amount.

Keep in mind, if the stock price is close to either of your strike prices, we’ll treat it as if it’s between your two strike prices.

Put Debit Spreads

Why Create a Put Debit Spread

A put debit spread is a great strategy if you think a stock will go down within a certain time period. When you enter a put debit spread, you’re buying a put and a selling put. The two puts have different strike prices but the same expiration date.

When entering a put debit spread, you’ll always pay a premium to someone who is giving you the right to sell the underlying stock at the higher strike price, and you also receive a premium for agreeing to buy the underlying stock if you get assigned.

Overall, entering a put debit spread costs you money.

How are the puts different?

The put with the higher strike price is what you’re hoping to profit off of, and the put with the lower strike price is what helps mitigate your losses.

The credit you receive for selling the put lowers the cost of entering a put debit spread, but it also caps how much profit you can make.

Reminder

Buying a put is similar to shorting a stock. When buying a put, you want the price of the stock to go down, which will make your option worth more, so you can make a profit.

When you’re selling a put, you want the price to go up or stay the same so your option expires worthless and you get to keep the money you received when you entered the position.

Why would I buy a put debit spread?

Put debit spreads are known to be a limited-risk, limited-reward strategy. This is because you’re capped at how much you can make or lose.

When you enter a put debit spread, you’re buying the right to sell stocks at a fixed price, and you’re also agreeing to buy them for an even lower fixed price if necessary.

Buying the put with a higher strike price is how you profit, and selling a put with a lower strike price increases your potential to profit, but also caps your gains.

How do I make money?

With a put debit spread, the maximum you can profit is the difference between the two strike prices, minus the premium you paid to enter the position.

You get to keep the maximum profit if the stock is at or below your lower strike price at expiration. If the stock is below your lower strike price, you’ll still only make the maximum amount.

What are the risks?

You’ll never lose more than the premium you paid to enter the put debit spread. If the underlying stock is at or above your higher strike price at expiration you’ll lose the maximum amount, the debit paid when you entered the position.

If this is the case, both put options will expire worthless.

Choosing a Put Debit Spread

Break-Even Price

The break even price is the price a stock needs to reach when your contract expires so that you don’t lose or make money on your investment.

Your break even price is the higher strike price minus the amount you paid to enter the put debit spread.

Strike Price

The strike price is the price at which a contract can be exercised. With a put debit spread, you’ll have one strike price for each of your put options.

High Strike Price

The higher strike price is the price that you think the stock is going to go below. The more the stock falls below this strike price, the more money you’ll make until you reach your maximum profit.

Low Strike Price

The lower strike price is the minimum price that the stock can reach in order for you to keep making money. Once the stock falls past this price, you’ll no longer profit.

How do I choose the right strike prices?

High Strike Price

The higher this strike price is, the more likely the stock price is to be below it at expiration, but the more you’ll pay as a premium.

Low Strike Price

The closer the low strike price is to the higher strike price, the cheaper the overall strategy will be, but it will also limit your potential gain.

Expiration Date

Unlike stocks, options contracts expire. The expiration date sets the timeframe for when you can choose to close or exercise your contracts.

How do I choose an expiration date?

The further away the expiration date is, the more money you’ll pay for the put debit spread, but the more time the stock has to surpass your break even price so you can make a profit.

Monitoring a Put Debit Spread

How does a put debit spread affect my portfolio value?

After buying, your portfolio value will include your put debit spread, and its price will change similar to the way a stock’s price changes, meaning its value can go up or down.

Where can I monitor it?

You can monitor your put debit spread on your home screen, just like you would with any stocks in your portfolio. You can find information about your returns and average cost by tapping the position.

Can I close my put debit spread before expiration?

Yes! To close your position from your app:

Tap the option on your home screen.

Tap Trade.

Tap Close.

Why would I close?

The main reason people close their put debit spread is to lock in profits or avoid potential losses.

If there are only a few more dollars that you can make, it may make sense to close your position and guarantee a profit.

Can I exercise my put debit spread before expiration?

Not really. With a put debit spread, you only control one leg of your strategy. While unusual, you can technically exercise the option with the higher strike price, and sell 100 shares of the underlying stock.

Can I get assigned?

Technically yes, but you don’t need to worry about this. If you get assigned it guarantees your maximum profit.

What happens at expiration when the stock goes...

Below the Low

If this is the case, you’ll keep the maximum profit. We’ll automatically exercise your contract with the higher strike price and you’ll likely get assigned on your lower option.

In Between the Two

If this is the case, we'll automatically close your position. Depending on whether you’re above or below your break even price, you can still make or lose money.

Above the High

We’ll let both of your options expire worthless and you’ll lose the maximum amount.

Keep in mind, if the stock price is close to either of your strike prices, we’ll treat it as if it’s between your two strike prices.

Iron Condors

Why Create an Iron Condor

An iron condor is a great strategy if you expect a stock’s price to stay within a certain range. With an iron condor, you’re entering both an above market price call credit spread and a below market price put credit spread.

How are the spreads different?

With a call credit spread, you’re hoping the underlying stock stays below the lower strike price, so you make a profit.

With a put credit spread, you’re hoping the underlying stock stays above the higher strike price, so you make a profit.

Reminder

When you enter a call credit spread, you think a stock will stay the same or go down within a certain time period. You want the strategy to expire worthless so you can keep the money you received when entering the position.

When you enter a put credit spread, you think a stock will stay the same or go up within a certain time period. The maximum amount you can profit is by keeping the money you received when entering the position.

Why would I enter an iron condor?

Iron condors are known to be a limited-risk, non-directional strategy. This is because you’re capped at how much you can make or lose.

You’d enter an iron condor when you expect the underlying stock’s price to stay relatively the same.

How do I make money?

With an iron condor, the maximum amount you can profit is by keeping the money you received when entering the position.

You get to keep the maximum profit if the iron condor expires when the stock’s price is between the higher put and the lower call strike prices.

What are the risks?

Your potential for profit starts to go down once the underlying stock goes too far up or down.

Once the underlying stock goes above the highest strike price or below the lowest strike price you’ll lose the maximum amount.

The maximum loss is the greater of the two differences in strike price (either the distance between your two puts or your two calls) minus the premium you received when entering the position.

Choosing an Iron Condor

Break-Even Price

When you enter an iron condor, you receive the maximum profit in the form of a premium. The stock needs to stay in between your two break even prices so that you don’t lose money on your investment.

To make money, you want the underlying stock to:

Stay Below

The strike price of the lower call option plus the premium you received for the entire iron condor.

Stay Above

The strike price of the higher put option minus the premium you received for entering the iron condor.

Strike Price

The strike price is the fixed price that you’ll receive or pay per share if you choose to exercise your option. With an iron condor, you have four strike prices. You have two call strike prices and two put strike prices. The call strike prices will always be higher than the put strike prices.

High Strike Price

This is a call with the highest strike price. Once the stock reaches or goes past this point, you’ll lose the maximum amount.

Middle Strike Prices

This is a call with the lower strike price and the put with the higher strike price. If the stock stays between these, you’ll make the maximum profit.

Lower Strike Price

This is a put with the lowest strike price. Once the stock reaches or falls past this point, you’ll lose the maximum amount.

How do I choose the right strike prices?

When picking your strike prices for an iron condor, there are two main things to consider:

Distance from the stock’s current market price

The closer your strike prices are to the stock’s current market price, the lower your probability is of being successful.

Distance between the calls and distance between the puts

The further apart your strike prices are, the more you’ll receive as a premium when entering the position. The bigger the difference in strike price, the more collateral you’ll need to hold, and the higher your maximum potential loss will be.

Expiration Dates

Unlike stocks, options contracts expire. It sets the timeframe for when you can choose to close your position.

How do I choose an expiration date?

The further away the expiration date is, the more money you’ll get for entering the strategy, but the more time the stock has to reach either of your break even prices.

Monitoring an Iron Condor

How does entering an iron condor affect my portfolio value?

When you enter an iron condor, your portfolio value will include the value of the spreads. Since this is a credit strategy, you make money when the value of the spread goes down. Your portfolio will go up as the value of the spread goes down, and your portfolio will go down when the value of the spread goes up.

Where can I monitor it?

You can monitor your iron condor on your home screen, just like you would any stocks in your portfolio. You can find information about your returns and average cost by tapping on the position.

Can I close my iron condor before expiration?

Yes! You can close your iron condor spread in your mobile app:

Tap the option on your home screen.

Tap Trade.

Tap Close.

Why would I close?

The main reason people close their iron condor is to lock in profits or avoid potential losses.

If there are only a few more dollars that you can make, it may make sense to close your position to guarantee a profit.

Can I exercise my iron condor before expiration?

No. You don’t really have control in this strategy because it’s a net credit strategy which means that you’re profitable if you don’t get assigned on the option that you’re selling, and it expires worthless.

Can I get assigned before my contract expires?

An early assignment will typically only happen if the stock moves drastically in either direction. If you get assigned, you’ll have to buy or sell 100 shares of the underlying stock before expiration.

If you get assigned on the call, you can buy 100 shares of the underlying stock at the higher strike price or less, depending on the stock’s current market value.

If you get assigned on the put, you can sell 100 shares of the underlying stock at the lower strike price or more, depending on the stock’s current market value.

You’ll typically only get assigned on the calls or the puts because only one of them can be profitable at a time.

What happens at expiration when the stock goes:

Above the High

If both calls are in the money, it’s very likely that you’ll get assigned on the contract with the lower strike price. If this is the case, we’ll automatically exercise the contract with the higher strike price, and you’ll lose the maximum amount.

In Between the Calls

If this is the case, we'll automatically close your position. Depending on whether you’re above or below your break even price, you can still make or lose money.

In Between the Calls and Puts

If this is the case, you’ll keep the maximum profit. We’ll automatically let all four contracts expire worthless, so you don’t need to worry about checking the app.

In Between the Puts

If this is the case, we'll automatically close your position. Depending on whether you’re above or below your break even price, you can still make or lose money.

Below the Low

If both puts are in the money, it’s very likely that you’ll get assigned on the contract with the higher strike price. If this is the case, we’ll automatically exercise the contract with the lower strike price, and you’ll lose the maximum amount.

Keep In Mind

If the stock price is close to any of your strike prices, we’ll automatically close your position.

Box Spreads

What is a box spread?

A box spread is an options strategy created by opening a call spread and a put spread with the same strike prices and expiration dates.

Example #1

Sell to open 1 ABC Call $11 3/22/2019

Buy to open 1 ABC Call $10 3/22/2019

Buy to open 1 ABC Put $11 3/22/2019

Sell to open 1 ABC Put $10 3/22/2019

Example #2

Sell to open 1 XYZ Call $25 3/22/2019

Buy to open 1 XYZ Call $26 3/22/2019

Sell to open 1 XYZ Put $26 3/22/2019

Buy to open 1 XYZ Put $25 3/22/2019

Why aren’t box spreads allowed on Robinhood?

Box spreads are often mistaken for an arbitrage opportunity because you may be able to open a box spread position for less than its hypothetical minimum gain. These positions, however, have hidden dividend risk that could lead to losing much more money than expected. Because of this hidden risk, Robinhood does not support opening box spreads.

Disclosures

All investments involve risk, including options transactions which may involve a high degree of risk. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. For more information about options trading, please read the Characteristics and Risks of Standardized Options before you begin trading options. Please also be aware of the risks listed in the following documents: Day Trading Risk Disclosure Statement and FINRA Investor Information.

What is a margin call?

Margin calls happen when the value of underlying stocks in your account fall, causing the account’s value to fall below your margin maintenance. If you get a margin call, you will have three days to bring your account value back up to your margin maintenance.

We’ll also send updates if your account happens to get close to the margin maintenance.

How do I avoid a margin call?

Margin calls are no fun, so we’re happy to give you some tips on how to avoid them.

Stay informed about what’s going on with the stocks you’ve bought with margin. If you think your stocks may take a tumble, you might consider selling them or depositing more cash into your account to avoid getting into a margin call.

Check out your Margin Health in the Account Summary section of your app. Here you’ll find how much value you can afford to lose before you enter a margin call. You want this number to stay positivethe bigger the better!

Look out for updates from us when you’re getting close to a margin call. You’ll receive a card in your app, a notification on your mobile home screen, and an email when you’re approaching a margin call.

What do I do if I get a margin call?

There are two ways to resolve a margin call:

You can deposit additional funds to increase your account value above the margin maintenance. This will allow you to keep your positions.

You can sell some of your shares. The proceeds from the sales will help cover your margin call. This will allow you to avoid depositing additional funds.

You need to have some stock trading experience before you can trade options. You can try again after you’ve made some trades, and update your investment profile to make sure it’s accurate and up to date.

If you decide to sell your gifted stock, you’re allowed to do so three trading days after you receive it. You can use the proceeds from the sale towards other stocks that you want to invest in.

You can reinvest the proceeds from selling stock immediately, unless you are trading certain high-volatility stocks, such as leveraged ETFs and penny stocks. If you’re trading one of these stocks, you may have to wait until the following day to get access to all of your funds.

High-volatility stocks are riskier investments, so rules established by FINRA require all brokers, including Robinhood, to create safeguards to help prevent customers from rapidly trading them.

Tip: You can see how much buying power you have available for a particular stock, and the stock’s volatility category by checking out the stock’s Detail page.

We don’t currently allow users to name a beneficiary, and we don’t offer automatic transfer on death registration. In the event of a death, we’ll work with the executor of the estate to collect proper documentation and dissolve the account appropriately.

Robinhood does not support market orders for options contracts due to greater volatility in the options market relative to equities markets. Placing limit orders will give your order a better chance of being executed at the price you want. This way, you’ll know how much you’re going to pay to buy a contract. For the same reason, we also don’t support stop orders.

You can place Good-til-Canceled or Good-for-Day orders. Your app’s default setting is Good-for-Day, but if you’d like to enter a Good-til-Canceled order, you can simply tap the clock icon and select Never Expires when you place your order.

Why should I invest?

People invest for the opportunity to generate greater returns on their money.

Investing is an alternate way to save for a down payment on a house, a dream vacation, or retirement.

Investing lets you get involved in companies and industries you’re passionate about.

Keep in mind, past performance of the stock market doesn’t guarantee it will continue to perform this way in the future.

How much should I invest in stocks?

There is no hard and fast rule of how much you should invest in the stock market. A good goal is to invest 5\%-10\% of your monthly income. However, this shouldn’t get in the way of any monthly expenses you have.

Your investing strategy should take into account your current financial situation, your financial goals, your timeline, and your risk tolerance.

The younger you are, and the longer you expect to be investing, the more you can focus your portfolio on long-term gains, and the less you have to worry about short-term risk.

A common way to calculate how much you should invest in stocks is by using the “100 rule.” If you subtract your age from 100, it equals the percentage of your portfolio that should be allocated to stocks versus cash or fixed-income securities like bonds.

Keep in mind, you should only invest what you’re willing to lose.

Once you’ve placed an order, you may have the option to cancel it before it’s executed.

Before You Begin

You can only cancel pending orders. You can’t reverse an order that’s been executed in the market.

There are two ways to cancel a pending limit order or stop order in your app.

From the Investing tab:

Find and tap your pending order on the Investing tab below your cards.

On the stock’s Detail page, navigate to Pending Orders.

Tap the order you’d like to cancel.

Tap the red Cancel Order button.

From the Account tab:

Tap the Account icon in the bottom right corner.

Tap History.

Tap the order you wish to cancel.

Tap the red Cancel Order button.

The market data displayed in this demo is not in real time.

Note: If you attempt to cancel a regular-hours order (Good-til-Canceled or Good-for-Day) for a NASDAQ-listed stock between 9:28 AM EST and 9:30 AM EST, we’ll keep the order open in the pending state until the opening cross for the stock. The opening cross usually happens at 9:30 AM EST. This is a NASDAQ rule that we can’t change, so we suggest that you cancel your pending order before 9:28 AM PST to avoid an execution.

iOS Android Web

Navigate to the stock’s Detail page.

Tap Trade.

Tap Trade Options.

Navigate to the stock’s Detail page.

Tap Trade.

Tap Trade Options.

Navigate to the stock’s Detail page.

ClickTrade Options, just below the order panel on the right.

Choose the options contract you'd like to purchase.

The market data displayed in this demo is not real-time.

iOS Android Web

Navigate to the stock’s Detail page.

Tap Trade.

Tap Buy.

Tap Order Types in the upper right order.

Select your preferred order type.

Confirm your order.

Swipe up to submit your order.

Navigate to the stock’s Detail page.

Tap Trade.

Tap Buy.

Tap Order Types in the upper right order.

Select your preferred order type.

Confirm your order.

Swipe up to submit your order.

Navigate to the stock’s Detail page.

Enter the number of shares you’d like to purchase into the order window on the right side of the screen.

Click Review.

Confirm your order.

The market data displayed in this demo is not real-time.

We’re here to help you understand the basics of cryptocurrency trading.

Cryptocurrencies

Cryptocurrencies are digital currencies, created and stored electronically in the blockchain using cryptography (hence “crypto”) to control their creation and to verify the transfer of funds. Cryptocurrencies are unique because they don’t have any physical form and exist only in the network. Their supply, or circulation, isn’t determined by any central bank or government, and the network itself is completely decentralized. There are a growing number of cryptocurrencies, but the most popular to date are Bitcoin, Ethereum, and Litecoin.

Blockchain

A blockchain is a digital, decentralized ledger of cryptocurrency transactions. The Bitcoin and Ethereum networks are both blockchains where all transactions are recorded. Where assets tied to governments were formerly backed by gold or silver, Bitcoin and Ethereum are backed by their respective networks. A typical cryptocurrency transfer is first published to the blockchain, where it’s then securely verified by multiple sources in the network. Once a transfer is confirmed by several sources and verified for all to see, it’s accepted by the network. Since the blockchain verifies the transfer of assets, you no longer need to go through a bank to initiate a transaction.

Bitcoin

Bitcoin, created in 2009, is the first decentralized cryptocurrency. Like many cryptocurrencies, it’s not tied to any government or issuing authority, and there’s no middleman involved when it’s used to purchase goods. Most of its concepts have been applied to other fields, and replicated in other cryptocurrencies. Bitcoin denotes both the name of the network and the currency that’s built on top of it. Its symbol is BTC. Bitcoins are a tradable asset on Robinhood. You can buy and sell fractions of BTC. The minimum order size is 0.00001 BTC. Keep in Mind: Bitcoin is not a stock and your cryptocurrency investments are not protected by SIPC.

Bitcoin Cash

Bitcoin Cash, launched in 2017, was created as an offshoot of Bitcoin that allows faster transactions on the network. Similar to Bitcoin, Bitcoin Cash is capped at 21 million coins. Its symbol is BCH. Bitcoin Cash is tradable on Robinhood, and you can buy and sell fractions of BCH. The minimum order size is 0.00001 BCH, and the smallest amount you can buy or sell is 0.00000001 BCH. Bitcoin Cash is not a stock and your cryptocurrency investments are not protected by SIPC.

Dogecoin

Dogecoin, introduced in 2013, is known for its playful take on the cryptocurrency phenomenon. It’s typically used in online communities to “tip” users for content that’s particularly witty or useful. It’s also become a popular cryptocurrency for donating to charities. Dogecoin’s symbol is DOGE. Dogecoin is tradable on Robinhood. The minimum order size is 10 DOGE. We don’t offer fractional Dogecoins.

Ethereum

Like Bitcoin, Ethereum is a digital currency based on a blockchain technology. Though the applications of Ethereum extend beyond currency, the coin, technically called an Ether, is a tradable asset on Robinhood. Its symbol is ETH. You can buy and sell fractions of ETH. The minimum order size is 0.001 ETH, and the smallest allowable quantity increment is 0.000001 ETH. For example, you can place an order for 0.001001 ETH, but not 0.000999 ETH. Keep in Mind: Ethereum is not a stock and your cryptocurrency investments are not protected by SIPC.

Ethereum Classic

Ethereum Classic is the original Ethereum blockchain. On July 20th, 2016, Ethereum executed a “hard fork,” which means that the single Ethereum blockchain split into two distinct blockchains. As a result of this split, what was once simply referred to as Ethereum became Ethereum Classic, and the newly created blockchain is now referred to as Ethereum. All transactions on both blockchains are identical up until the hard fork at block 1920000. Starting at the split, the two cryptocurrencies began living on separate blockchains.. Ethereum Classic is tradable on Robinhood, and you can buy and sell fractions of ETC. The minimum order size is 0.001 ETC.

Litecoin

Litecoin was launched in 2011 as an alternative cryptocurrency to Bitcoin. Like Bitcoin, it’s based on blockchain technology. Litecoin has quickly become one of the most popular cryptocurrencies because of its fast transfer confirmation times when compared to Bitcoin. Its symbol is LTC. Litecoin is tradable on Robinhood, and you can buy and sell fractions of LTC. The minimum order size is 0.001 LTC, and the smallest amount you can buy or sell is 0.00000001 LTC. Litecoin is not a stock and your cryptocurrency investments are not protected by SIPC.

Volatility

The prices of cryptocurrencies are volatile largely because they’re a new asset class, and there’s no consensus on their overall worth as a currency or investment.

Commission-Free Orders

Robinhood Crypto supports market and limit orders for cryptocurrencies, and they work similarly to orders for stocks and options. When you place a market order, we display the best available price on Robinhood Crypto, which is based on the exchanges we connect to. You’ll never get charged a commission or additional trading fee on top of the execution price. For limit orders, you specify the maximum (or minimum) price you’re willing to buy (or sell) at. Cryptocurrency prices are volatile. To help protect your market orders against dramatic price moves, we adjust market orders to limit orders collared up to 1\% for buys, and 5\% for sells. Any price difference you see between the estimated price and the execution price is due to market movement and isn’t something that Robinhood profits from.

What is Cash Management?

Cash Management is offered as part of your brokerage account, and lets you use Robinhood Financial for everyday transactions like investing, spending, and saving. Your uninvested cash is swept to our network of program banks where it starts earning 2.05\% annual percentage yield (APY). With Cash Management, you request a customized debit card that’s offered by Sutton Bank.

Keep in mind that the 2.05\% APY is as of October 8, 2019 and can change at any time at the discretion of the program banks.

Here’s what you get for free with Cash Management:

A Robinhood debit card

An ACH account number and routing number

Lost and stolen replacement cards

Access to Apple Pay, Google Pay, or Samsung Pay

Why is there a waitlist for Cash Management?

Access to Cash Management through your existing brokerage account is currently limited. Roll out will begin soon. We believe it’s worth the wait.

How do I join the waitlist?

Anyone can join the waitlist, even if you haven't used Robinhood before. Please keep in mind that you will have to have an approved brokerage account with us before you can upgrade to Cash Management once you’re off the waitlist. Until you have successfully opened a brokerage account with us and received a confirmation that you have activated the Cash Management feature, you will not earn interest on uninvested cash, or have access to the debit card.

If you already have a brokerage account through Robinhood Financial, you can join the list by either:

Going to the tab with the card icon in your app and tapping “Join the Waitlist”.

Going to the Cash Management website and entering the email address associated with your brokerage account.

If you don’t have a brokerage account through Robinhood Financial yet, you can join the waitlist by either:

Downloading the Robinhood app and tapping the “Cash Management” card at the top of the welcome screen and then tapping “Join the Waitlist” on the next screen.

Going to the Cash Management website and entering your email address.

Next, choose the debit card design you want, and then you’ll see your spot in line.

Debit card design, you say?

You’ll get a free debit card issued by Sutton Bank when you sign up for Cash Management and you can pick from 4 beautiful designs:

Green

Black

White

American Flag

Pick the debit card design of your choice when joining the waitlist. If you change your mind, you’ll get a final chance to confirm or change it once you get off the waitlist. Choose wiselyafter that point you’ll be locked into whichever design you pick!

Are there any commitments for joining?

There are no commitments involved in joining the waitlist. We’ll send you an email when you’re off the waitlist, and you can get started with as little as one cent in your brokerage account.

When will I get access to Cash Management?

We’ll start rolling out Cash Management soon. When your invite to sign up is ready, you’ll get an email and push notification from Robinhood.

Securities trading offered through Robinhood Financial LLC, member SIPC and FINRA. Cryptocurrency trading offered through Robinhood Crypto, LLC. Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services and is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not products protected by either FDIC or SIPC. Robinhood Financial LLC and Robinhood Crypto, LLC are wholly-owned subsidiaries of Robinhood Markets, Inc.

The Cash Management Annual Percentage Yield (APY) paid by program banks is 2.05\% as of October 8, 2019. APY is determined by the program banks into which your uninvested cash is swept, and may change at any time. Neither Robinhood Financial LLC nor any of its affiliates are banks.

The Robinhood debit card is issued by Sutton Bank, member FDIC, pursuant to a license by Mastercard International Incorporated.

Robinhood Financial LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. Please note that until funds are swept to a program bank, they are covered by SIPC protection. They are not covered by SIPC protection when on deposit at a program bank.

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Stock settlement is the time it takes stocks or cash to reach their new destination after a transaction is executed. Buying power is the amount of money you have available to make purchases in your app.

Instant Settlement

If you have a Robinhood Instant or Robinhood Gold account, you have instant access to funds from bank deposits and proceeds from stock transactions. This means that if you sell a stock today, you can use the funds right away, instead of waiting the typical two trading days for access to those funds.

With a Robinhood Instant account, you have access to up to $1,000 of instant deposits, and with a Robinhood Gold account, you have access to your tier amount in instant deposits.

For Robinhood Crypto, funds from stock, ETF, and options sales become available for buying within 3 business days. However, limited cash deposits and all proceeds from crypto sales are available to instant accounts immediately. See Crypto Buying Power on our Cryptocurrency Investing page for more details.

Note: Cash accounts don’t have access to instant settlement, and banking holidays can affect settlement times.

Buying Power

Buying power is the amount of money you can use to purchase stocks, options, or cryptocurrencies. Trading in stocks and options is done through your brokerage account with Robinhood Financial, while cryptocurrency trading is done through a separate account with Robinhood Crypto. You can still see all of your buying power in one place in the app or on Robinhood Web.

You can view your available buying power in your mobile app:

Tap the Account icon in the upper left corner. You can view your buying power here.

For a comprehensive overview, tap Account.

Earnings are like quarterly report cards for companies. During earnings, companies make a public announcement about their profits or losses, and also provide guidance on what to expect in the future.

Earnings announcements come in the form of a press release, a conference call (which you can listen to on Robinhood), and an official filing with the SEC “10-Q.”

Investors pay close attention to earnings calls because this is one of the few times you can hear a company’s CEO share how their company is performing.

What’s the strategy?

Your decision to buy or sell a stock should be based on your belief in the value of a company.

If the earnings call gives people more confidence in a company, stock prices often go up. If people lose confidence in a company’s performance, stock prices typically go down. Checking if a company’s stock price goes up or down after earnings is a great gut check to see how well the market believes a company is doing.

How do I see earnings on Robinhood?

Once you choose the company whose earnings you’d like to see, scroll down on its stock Detail page to the Earnings section. You’ll see the amount of profit a company made in the most recent quarters in terms of “earnings per share,” or EPS. You’ll also see the company’s next earnings announcement date.

What does “EPS” mean?

EPS, or earnings per share, is a dollar amount that represents the company’s overall quarterly profits divided by the number of shares in the market. This shows you the amount of profit the company made for each share of stock it has in the market.

Example: If Company ABC has 1 million shares in the market and just announced $10M in revenue, the EPS is $10.

How do I use EPS?

Many investors use EPS figures to better understand a company’s profitability and ability to meet profit goals. When profits are higher, it may indicate that the value of the company’s shares will increase. The opposite is true for when a company’s profits are down.

What is Actual EPS versus Expected EPS?

Actual EPS refers what a company reports during earnings, while the Expected EPS is what analysts predict a company’s earnings will be.

How does it work?

We’ll add 1 share of free stock to your account when your brokerage application is approved. You’ll be able to keep the stock or sell it after 2 trading days.

How does Robinhood choose which stock I get?

The shares of free stock are chosen randomly from our inventory of settled shares. Because the shares are chosen randomly, you may not receive the same stock as others.

The value of the share you receive may be anywhere between $2.50 and $200, and fluctuates based on market movements. We choose companies based on the price of each share, from the most popular and highest total value (market capitalization) companies on Robinhood.

Can I open a second Robinhood account to get a free stock?

No, each person is only allowed one Robinhood account.

It didn’t work for me?

If you signed up after tapping on the free stock link but didn’t receive a stock, please contact [email protected].

Depending on the options strategy you use, we may hold stocks or cash as collateral to make sure you can cover the position in the case of assignment.

Collateral Held in Stock

Selling to Open a Covered Call

You’ll need to have 100 shares per contract of the underlying stock in your portfolio to cover the position. As long as the position is open, you won’t be able to sell 100 shares of the underlying stock.

Collateral Held in Cash

Selling to Open a Cash-Covered Put

We’ll set aside enough money from your portfolio to buy the underlying stock at the contract’s strike price.

Opening a Credit Spread

We’ll put aside enough cash from your account to cover your maximum loss.

You’ll be able to see exactly what collateral we hold on the Detail page of the underlying stock.

Keep In Mind

We won’t use Gold Buying Power as collateral. We must hold cash.

Pending Orders

When you place an options order, we’ll hold the appropriate collateral (cash or stock) beginning at the pending state. The same way we hold enough cash to fill your pending order when you open an equity position, we’ll hold enough cash or stocks to cover your option position until the order is canceled.

Using Your Debit Card

Where can I use my Robinhood debit card?

You can use your Robinhood debit card anywhere that Mastercard is accepted around the world. You can make purchases at stores or online, reserve a hotel or open a tab at a restaurant, get cash, and more.

You can use your Robinhood debit card 24 hours a day, 7 days a week, as long as you have enough available cash in your brokerage account to cover purchases.

What’s available cash?

Available cash is any cash that you have in your brokerage account that you can withdraw or spend. For those with Robinhood Gold and have margin enabled, available cash will include margin.You can find the amount of available cash you have at the top of the Cash Management tab.

How do I get cash with my Robinhood debit card?

You can use your Robinhood debit card to get cash at any in-network ATM or by asking for cash back after typing in your PIN at participating stores.

You can search in your app to find the closest in-network ATM. You can also use your card at an out-of-network ATM; however, you may need to pay the ATM operator a fee.

Can I use my Robinhood debit card abroad?

You can use your Robinhood debit card anywhere in the world that Mastercard is accepted. Mastercard will automatically convert currencies for you at a rate selected by Mastercard, and Robinhood won’t charge any foreign transaction fees on debit card transactions. Please note that if you choose to pay a foreign debit card transaction in US Dollars, or choose to withdraw funds from a foreign ATM in US Dollars, the merchant or ATM operator may charge you a currency conversion fee. See our Debit Card Agreement for information about foreign currency exchange.

You can also use your Robinhood debit card at over 15,000 free ATMs outside the United States. In order to search for the nearest in-network ATM, use the “Find ATMs” section in your app to find the nearest withdrawal locations.

Keep in mind, your card won’t work in a few banned countries and with some merchants that aren’t connected to the internet.

What happens when I use my Robinhood debit card?

When you use your Robinhood debit card, we’ll hold money from your account to cover the cost of your purchase. You’ll see a “Pending” item in the “Recent” section of the Cash Management tab. Your transaction will show up as “Pending” until the purchase amount is final and the money is actually moved out of your account.

In most cases, the original amount of the transaction won’t change. That being said, the original amount charged could be larger than the final amount. Some merchants markup transactions to cover incidentals or tips (for example, holds for gas, hotels, or restaurant tips). This means that an original charge may be larger than the final amount that you have to pay. If the original markup charge is for more than what's available for you to spend, we’ll decline the transaction.

On the other hand, sometimes the original amount authorized will be for less than the final transaction amount (for example, if you’re leaving tips on paper receipts at restaurants). Your transaction amount will change once the merchant processes the actual amount they’re charging.

Protections on Your Debit Card

How is my debit card protected?

Mastercard Zero Liability Protection: Your Robinhood debit card comes with Mastercard’s Zero Liability protection. Your protection applies to purchases that you make in the store, online, or via a mobile device.If you notice any unauthorized transactions, you can contact support with the transactions in question and we’ll help investigate your claim and work to return your money.

Fraud Monitoring: Every transaction that you make is run through several different fraud checks. If we think that the purchase is fraudulent, we’ll decline the transaction and send you a notification. If this transaction was incorrectly flagged, you’ll be able to acknowledge the transaction and try again. If it was a fraudulent transaction, you’ll be able to lock your card and/or report it stolen right in your app.

Location Protection: Location Protection helps protect you from people using your card far away from your actual location. We determine your location based on the location of your mobile phone. For example, if you’re in Arizona (based on location information from your phone) but your card is swiped in Wyoming, we’ll decline that transaction. Location Protection is optional, and it only works if you’re sharing your location with Robinhood. If you’re going to be spending money away from your phone you can always turn Location Protection off in your app.

Lock Your Card: Locking your card prevents all future transactions on your card. If someone (including you) tries to use your card, they’ll get declined and we’ll send you a push notification and email. You can lock or unlock your card at any time by tapping the debit card image in the Cash Management tab and toggling “Lock Card.” Locking your card won’t prevent pending transactions from settling or changing.

Spend Alerts: We’ll send you a push notification and an email every time your card is used. We’ll let you know the merchant and the purchase amount so you can stay on top of your spending. You can also disable these notifications altogether if you’d like.If you don’t recognize the purchase, you can lock your card or report it stolen right in your app. You can contact support with the purchase(s) in question and we’ll help investigate your claim and work to return your money.

Overdraft Protection: Your Robinhood debit card prevents overdraft by default. We’ll decline transactions that make you go negative if you don’t have enough available cash, including any available margin credit, to cover it. We don’t charge you anything for getting declined for insufficient funds.Keep in mind, in the event that you leave a large tip on your debit card at a restaurant for example, it could cause your account to go negative because the final amount of the transaction may exceed the amount we originally approved. If you have a Robinhood Gold account and you surpass your borrowing limit, it’s possible to be issued a margin call or have negative buying power. If the final amount is higher than the amount of your withdrawable funds, including any available margin credit, we’ll decline the transaction at that point.

What do I do if my card is lost or stolen?

To report your card lost, stolen, or damaged, tap the card in the Cash Management tab and select “I Have a Problem.” If you don’t have your app handy, you can call 1-800-601-3350 to report your card lost or stolen 24 hours per day, 7 days per week.

Once you report your card lost or stolen, your card will be cancelled, and you will be mailed a new card within 7-10 business days, free of charge. We’ll also give you a new debit card number right away in the app, which you can use online, or with Apple Pay, Google Pay or Samsung Pay.

If there are any fraudulent charges, you can file a dispute by contacting support and we’ll work to get your money back.

How do I change my PIN?

You can change your PIN at any time with the Robinhood app. Just tap the card in the Cash Management tab and select “Change PIN.” Your new PIN will be updated immediately and you can start spending again.

Can I set up Apple Pay, Google Pay, or Samsung Pay?

Yes. Your Robinhood debit card supports Apple Pay, Samsung Pay, and Google Pay. You can do this by taking a photo of your card or manually entering your card information.

FAQs

My card says it’s issued by Sutton Bank. What’s that all about?

We work with Sutton Bank to issue the Robinhood debit card. That's why you may see Sutton Bank when you link your card to third parties, like Venmo or Square.

I used my debit card, but I don’t see a charge yet. What’s happening?

Some merchants wait before charging your debit card. This is very common with merchants like Amazon.

Can I overdraft?

Robinhood will decline transactions that would cause you to exceed your available cash, including any available margin credit. However, there are some circumstances when the final amount of a debit card transaction will exceed the amount we originally authorized. For example, in the event that you leave a large tip at a restaurant, the final transaction amount could be more than we approved and it could cause your account to go negative.

If you have a Robinhood Gold account and you surpass your borrowing limit, it’s possible to be issued a margin call or have negative buying power.

Please refer to our Gold + Cash Management section for more information.

Can I spend my Instant deposit?

No. You can use your instant deposits to make trades, but can’t use instant deposits for debit card purchases, cash withdrawals, or transfers.

What do I do if a charge in my app disappeared?

If a charge doesn’t settle, we’ll expire the hold and give you back the money. When this happens, the charge will disappear from the “Recent” section in your app.

Why did the amount I was originally charged change?

Sometimes the amount that you’ve been charged changes between the time you made your purchase and the time the transaction settles. This is common for transactions at hotels, car rentals, gas stations, and restaurants.

Why are there several transaction entries from my one purchase?

Sometimes merchants may charge you several times if the pricing of the item updates. This is common for online transactions where pricing often changes such as Uber or Lyft. Contact support if you feel like something’s off.

What if I don’t recognize a transaction on my statement?

If you don’t recognize the amount, the time, or the merchant description of a transaction, please contact support immediately so we can look into the charge.

Keep in mind, sometimes the data on merchants isn’t always what you expect it to be. For example, if a merchant does business under another name, you may see a different merchant name from the one you were expecting.

Why are the dates different between my statement and my app?

We’ll show you the date that your card was charged in your app, but your statement will show the date that those charges settled. This means that it’s possible that charges that settle after the statement closing date may not show up until the next month’s statement.

What happens if I want to use my card away from my phone but Location Protection is on?

You can always turn Location Protection off in the app from the settings page.

Can I switch card colors?

No. Once you’ve confirmed your color when signing up you can’t switch it. Choose wisely!

Limits on your Debit Card

Spending Limits

Daily Debit Card Spending Limit

$5,000

Monthly Debit Card Spending Limit

$15,000

Daily ATM Cash Withdrawal Limit

$510

Monthly ATM Cash Withdrawal Limit

$5,000

Banned Countries

Use of your Robinhood debit card is currently banned in the following countries:

Cuba, Iran, Iraq, Papua New Guinea, Democratic People’s Republic of Korea, Sudan, Zimbabwe, Afghanistan, Bosnia and Herzegovina, Belarus, Cte d'Ivoire, Democratic Republic of the Congo, Guyana, Lao People’s Democratic Republic, Uganda, Yemen, Burundi, Central African Republic, Libya, Lebanon, Somalia, South Sudan, Ukraine, Venezuela, Vanuatu, Algeria, Angola, Panama, Myanmar, Liberia, Albania, Argentina, Azerbaijan, Balkans, Bangladesh, Belize, Bolivia, Brunei Darussalam, Cambodia, Cyprus, Dominica, Ecuador, Ethiopia, Ghana, Haiti, Honduras, Indonesia, Kenya, Kuwait, Kyrgyzstan, Mongolia, Morocco, Namibia, Nepal, Nicaragua, Nigeria, Pakistan, Paraguay, Philippines, Qatar, Sao Tome and Principe, Sierra Leone, Sri Lanka, Suriname, Syria, Tajikistan, Tanzania, Thailand, Trinidad and Tobago, Turkey, Turkmenistan, Uzbekistan, and Vietnam.

More Information

For more information about the terms applicable to the Robinhood debit card, please see the Robinhood Debit Card Agreement.

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A limit order will only be executed if options contracts are available at your specific limit price or better. Due to high volatility in the options market, Robinhood requires you to set a limit price for all options trades.

Buy Limit Order

With a buy limit order, you can set a limit price, which should be the maximum price you want to pay for a contract. The contract will only be purchased at your limit price or lower.

Sell Limit Order

With a sell limit order, you can set a limit price, which should be the minimum amount you want to receive for a contract. The contract will only be sold at your limit price or higher.

If the market is closed, the order will be queued for market open. Just like other option orders, these orders will not execute during extended hours.

Keep in mind, limit orders aren't guaranteed to execute. There has to be a buyer and seller on both sides of the trade. If there aren't enough contracts in the market at your limit price, it may take multiple trades to fill the entire order, or the order may not be filled at all.

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Here’s how to link your bank account.

Before You Begin

We recommend linking a checking account rather than a savings account to avoid potential transfer reversals.

Major Banks

If you do business with a major bank like Bank of America or Wells Fargo, it’s easy to link your bank account* in the app.

AppWeb

To link a major bank in your iOS or Android app:

Tap the Account icon in the bottom right corner.

Tap Transfers.

Tap Linked Accounts.

Tap Add New Account.

Choose your bank from the list of major banks, or scroll down and tap More Banks to search for your bank.

Enter your online banking username and password.

Choose which account you'd like to link.

To link a major bank in your web app:

Click Account in the upper right corner of the screen.

Click Banking.

Click Add New Account under Linked Accounts.

Choose your bank from the list of major banks, or scroll down and click More Banks to search for your bank.

Enter your online banking username and password.

Choose which account you'd like to link.

If you receive the error message “Error: Please disable the added/extra security placed on the account,” you’ll need to either disable the two-factor verification setting on your bank account, or contact your bank to make sure there isn’t a problem with your online banking profile.

*You can fund your account with an individual or joint bank account. We can’t allow funding from trust or business accounts at this time. Please make sure you link the correct account type to avoid restrictions on your Robinhood account. For security purposes, we limit the number of bank accounts we can link to a single Robinhood account. We also limit the number of Robinhood accounts that a bank account can be linked to.

Smaller Banks

If you don’t see your bank or credit union listed, you’ll need to verify your account manually.

App Web

To link a non-listed bank or credit union in your iOS or Android app:

Tap the Account icon in the bottom right corner.

Tap Transfers.

Tap Linked Accounts.

Tap Add New Account.

Scroll down and tap More Banks.

Type in your bank.

If you don't see it, tap I don't see my bank.

Select checking or savings.

Enter your routing and account number.

To link a non-listed bank or credit union in your web app:

Click Account in the upper right corner of the screen.

Click Banking.

Click Add New Account under Linked Accounts.

Search for your bank.

Click I don’t see my bank.

Enter your account information.

Once you’ve submitted your information, we’ll initiate two micro deposits to your bank account. Please allow up to 48 hours for the transfers to appear in your bank account.

Once the two small transfers have landed in your bank account, verify them in your mobile app:

Tap the Account icon in the bottom right corner.

Tap Transfers.

Tap Linked Accounts.

Tap Verify.

Enter the two deposit amounts.

Tap Enter.

Note: These two small transfers are for the sole purpose of verifying your bank account and will be withdrawn when they expire.

We encourage you to take extra care to enter this information accurately, and to include any leading or trailing zeroes in both account and routing numbers.

Please also make sure to select Savings or Checking (located at the top of the Link Account screen).

Tips and Tricks

Savings and money market accounts are subject to regulations that limit your allotted number of transactions per month, and they don’t always offer ACH transactions.

If you're unsure of your bank account status, please check with your bank representative to be sure your account supports ACH transfers.

Unfortunately, we can’t accept debit cards that function as checking accounts. You’ll know it’s a valid checking account if it provides monthly statements addressed to you, the account holder.

Please make sure you have sufficient funds in your account to prevent a bank overdraft fee. We won’t be able to cover overdraft fees if the micro deposits cause them.

Micro Deposit Errors

Linking your bank account manually can be a tricky process, and you may encounter one of these errors:

If you only see one micro deposit in your bank account, your bank is merging the two deposits together. Contact your bank or credit union to get the original amounts in chronological order.

If you don’t see the two small transfers after three days, verify that your account and routing numbers are correct. If your information is correct, your bank may be denying access to your bank account. Call your bank to authorize ACH transfers.

Please don’t initiate multiple micro deposit verifications within a short period of time. This could make it difficult to determine which deposits to verify.

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reach out

A corporate action is any activity a company takes that affects shareholders and results in a significant change to the company's stock. Our dedicated Corporate Actions Team is committed to making sure the changes that come with corporate actions are seamless for you and all of our users.

We process mandatory corporate actions, which include stock splits, mergers, and spinoffs, and accept orders to participate in voluntary corporate actions like tender offers. For mandatory corporate actions, we’ll make sure the necessary adjustments are made in a timely manner, according to the affected company’s wishes.

A voluntary corporate action allows shareholders to choose if they want to participate in the event, and the company can’t act without the shareholder’s response. Examples of voluntary corporate actions include tender offers, buyback offers, and rights offerings.

Tip: If you have specific questions about the terms of a corporate action, like why it’s happening, we encourage you to reach out the company’s Investor Relations department for details.

Keep In Mind

We’ll temporarily prevent you from trading the affected stock while the Corporate Actions Team works to process these changes.

You can stay up to date with recent corporate actions by checking out our Corporate Actions Trackera curated list of the most relevant corporate actions on Robinhood.

Mandatory Corporate Actions

Stock Splits

What Happens to the Company

A company performs a stock split to increase or decrease the number of shares it has in the market.

Forward Stock Split

What Happens to the Company

When a company decides to execute a forward stock split, the number of outstanding shares will increase, while the stock's price will decrease; and the overall market value of the position will remain the same.

What Happens to Your Shares

This means that you will see the number of shares you own in the company increase, though the value of each individual share will decrease proportionally.

Example

If you own 10 shares of XYZ valued at $10 each, and XYZ executes a 10 for 1 (10:1) stock split, you’ll now own 100 shares valued at $1 each.

Reverse Stock Split

What Happens to the Company

Similarly, when a corporation executes a reverse stock split, the number of shares in the market will decrease, while the market value for each of those individual shares will increase.

What Happens to Your Shares

This means that you’ll see the number of shares you own in the company decrease, though the value of each individual share will increase proportionally.

Example

If you own 10 shares of XYZ valued at $10 each, and XYZ executes a 1 for 10 (1:10) reverse stock split, you will now own 1 share worth $100.

Remember, the overall value of the position always stays the same in a stock split.

Mergers

What Happens to the Company

Sometimes a company will choose to acquire another company. The buying corporation may choose to perform a cash merger & liquidation, a stock merger, or a cash and stock merger.

Cash Merger & Liquidation

Imagine XYZ Co decides to buy out Y Corp:

Now that XYZ Co controls the shares of Y Corp, it can decide that investors who own shares of Y Corp will receive $10.00 for every 1 share of Y Corp they owned. Y Corp’s shareholders are paid their cash (cash merger), and Y Corp stock stops trading in the market (liquidation).

Stock Merger & Liquidation

Imagine XYZ Co decides to buy out Y Corp:

Now that XYZ Co controls the shares of Y Corp, it can decide that investors who own shares of Y Corp will receive 2 shares of XYZ Co for every 1 share of Y Corp they owned.

Y Corp shareholders now own XYZ Co shares (stock merger), and Y Corp stock stops trading in the market (liquidation).

Cash & Stock Merger

A cash and stock merger simply means that the buying company will give owners of the acquired company shares of the buying company and a cash payout.

Fractional Shares

After a stock split happens, there may be extra shares left over.

A fractional share is a share of equity that is less than one full share. Companies have a few options when dealing with fractional shares that result from a corporate action:

They can pay cash-in-lieu proportional to the value of the fractional shares you own.

They can pay nothing.

They can round up to the nearest whole share.

Example

You own 10 shares of XYZ, and XYZ undergoes a 1:3 reverse stock split.

You will technically now own 3.33 shares of XYZ.

We don’t support fractional shares, so you’ll experience one of the above-mentioned outcomes, depending on what the company decides to allocate.

Cash-in-Lieu

Cash-in-Lieu is a cash payment made to owners of fractional shares that result from corporate actions. The cash rate is predetermined by the company performing the corporate action, and can be found on the company’s corresponding SEC 8-K document.

You should expect cash-in-lieu payments to settle in your Robinhood account three to four weeks after the corporate action has been completed. Confirmation of this payment can be found in your monthly account statements.

Spinoff

Sometimes a company will choose to create a new, independent company under its umbrella. The original company may choose to issue shares of the new independent company to the original company’s shareholders.

Delisting

Delisting simply refers to a stock’s removal from an exchange. Oftentimes when we refer to a stock’s delisting, we mean that it’s been removed from a major exchange and now trades on the OTC markets.

Voluntary Corporate Actions

Participating in a Voluntary Corporate Action

The issuing company performing the corporate action decides the terms of the offer, and you’ll receive offer materials and instructions via email, or through traditional mail, if you choose. The materials will outline the terms of the event and provide important information such as the expiration date.

If you'd like to participate, simply with the following information:

The stock symbol for the offer

The number of shares you’d like to participate with

A member of the Robinhood team will be happy to help you process your voluntary corporate action.

Tender Offers

A tender offer invites existing shareholders to "tender”selltheir shares. Basically, a tender offer is a conditional offer for the company to buy back your shares of the stock. The company making the offer is willing to buy your stock at a predetermined price if you tender your shares.

Example

For example, Company XYZ has a current stock price of $10 per share. The company presents shareholders with the offer to tender their shares for $12.00 per share. You can choose if you want to sell your shares back for $12, or just hold on to them with the expectation they're worth more than $12 per share. You’re not obligated to take any action, which is why a tender offer is considered a voluntary corporate action.

Warrants

A warrant is an asset that allows its owner to buy stock in the company that issued the warrant at a fixed price, called the exercise or subscription price. Warrants are usually issued for a longer term, with an expiration date several years in the future.

Example

For example, Company XYZ issues warrants to buy 10 shares of their stock at a $10 strike price and you own one of the warrants. Five years after you receive the warrant, Company XYZ’s stock is trading at $20 in the market. You could exercise your warrant and buy your ten shares at the $10 strike price instead of the $20 market price.

Rights Offerings

When a company plans to offer new shares of stock to the public, sometimes they’ll issue a rights offering. A rights offering gives existing shareholders an opportunity to purchase shares of the new stocks at a specific price before those shares are offered to the rest of the public. Rights have an expiration date and are issued for a short time only.

Rights are usually issued in proportion to the number of shares you currently hold. For example, if you currently hold 100 shares in Company XYZ, you will likely be issued 100 rights. This could differ depending on the specific terms of the corporate action, of course. Participation in a rights offering is voluntary.

iOS Android Web

Navigate to the stock’s Detail page.

Tap Trade.

Tap Sell.

Tap Order Types in the upper right order.

Select your preferred order type.

Confirm your order.

Swipe up to submit your order

Navigate to the stock’s Detail page.

Tap Trade.

Tap Sell.

Tap Order Types in the upper right order.

Select your preferred order type.

Confirm your order.

Swipe up to submit your order

Navigate to the stock’s Detail page.

Click Sell in the order window on the right side of the screen.

Enter the number of shares you’d like to sell. (See the number of available shares at the bottom of the window.)

Click Review.

Confirm your order.

A trailing stop order lets you track the best price of a stock before triggering a market order. Investors often use trailing stop orders to help limit their maximum possible loss.

With a trailing stop order, the trailing stop price follows, or “trails,” the best price of the stock by a trail that you specify. If the stock’s price moves in a favorable direction, the trailing stop price will move with the stock. If the stock’s price moves in an unfavorable direction, the trailing stop price will stay the same.

If the stock’s price reaches the trailing stop price, a market order is triggered. The market order will be executed at the best price currently available.

Keep in mind, short-term fluctuations in a stock’s price can trigger a trailing stop order. Also, you aren’t guaranteed a price with a trailing stop order. Also, not all stocks support market orders during extended hours. If the market is closed, the order will be queued for market open. Learn more by checking out Extended-Hours Trading.

Buy Trailing Stop Order

With a buy trailing stop order, the stop price follows, or “trails,” the lowest price of a stock by a trail that you set. If the stock rises above its lowest price by the trail or more, it triggers a buy market order. Then, the stock will be purchased at the best price available.

Example

You want to buy MEOW, but you think it will fall in value and want to wait to purchase it. You also think that if MEOW goes up by a defined amount (let’s say 5\%) it may go even higher. In an attempt to help minimize potential costs, you set your trail to 5\%. Your stop price will always remain 5\% above MEOW’s lowest price.

MEOW is currently trading at $110 per share. Your stop price will start at $115.50, which is 5\% higher than the current price of MEOW.

If MEOW stays between $110 and $115.50, the stop price will stay at $115.50.

If MEOW falls to $100, the stop price will update to $105, 5\% above than the new lowest price.

If MEOW rises to the stop price ($105.50) or higher, it triggers a buy market order. MEOW will be purchased at the best price currently available.

These examples are shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.

Sell Trailing Stop Order

With a sell trailing stop order, the stop price follows, or “trails,” the highest price of a stock by a trail that you set. If the stock falls below its highest price by the trail or more, your sell trailing stop order becomes a sell market order and the stock will be sold at the best price currently available.

Example

You own MEOW. You think MEOW will rise in value, but want to help protect yourself in case it falls in value. If you set your trail to 5\%, your stop price will always remain 5\% below MEOW’s highest price.

MEOW is currently trading at $100 per share. Your stop price will start at $95, which is 5\% lower than the current price.

If MEOW stays between $100 and $95, the stop price will stay at $95.

If MEOW rises to $110, the stop price will update to $104.50, 5\% below the new highest price.

If MEOW falls to the stop price ($95) or lower, it triggers a sell market order. MEOW will be sold at the best price currently available.

These examples are shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.

@Robinhood20190822-930961-2814801

A stop order is an order to buy or sell a stock once the price of the stock reaches a specific price, known as the stop price. When the stock hits your stop price, the stop order becomes a market order. The market order is executed at the best price currently available. Investors often place stop loss orders to help minimize potential losses, in case the stock moves in the wrong direction.

Keep in mind, short-term market fluctuations in a stock’s price can trigger a stop order to turn into a market order. Also, not all stocks support market orders during extended hours. If the market is closed, the order will be queued for market open. Learn more by checking out Extended-Hours Trading.

Buy Stop Order

With a buy stop order, you can set a stop price above the current price of the stock. If the stock rises to your stop price, your buy stop order becomes a buy market order.

Example

MEOW is currently trading at $5 per share. You want to wait to purchase MEOW because you think it’ll fall to a lower price. You also think that if MEOW reaches $8, it may go higher. To help minimize your potential costs, you can set your stop price to $8.

If MEOW rises to $8 or higher, your buy stop order becomes a buy market order. Then, MEOW is purchased at the best price currently available.

If MEOW stays below $8, a market order isn’t triggered and no shares are purchased.

These examples are shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.

Sell Stop Order

With a sell stop order, you can set a stop price below the current price of the stock. If the stock falls to your stop price, your sell stop order becomes a sell market order.

Example

MEOW is currently trading at $10 per share. You want to wait to sell MEOW because you think it’ll rise to a higher price. To help protect yourself in case MEOW reverses itself and begins falling, you can set your stop price to $8.

If MEOW falls to $8 or lower, your sell stop order becomes a sell market order. Then, MEOW is sold at the best price currently available.

If MEOW stays above $8, a market order isn’t triggered, and you keep your shares.

These examples are shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.

@Robinhood20190822-930961-2814805

A limit order can only be executed at your specific limit price or better. Investors often use limit orders to have more control over execution prices.

Keep in mind, limit orders aren't guaranteed to execute. There has to be a buyer and seller on both sides of the trade. If there aren't enough shares in the market at your limit price, it may take multiple trades to fill the entire order, or the order may not be filled at all.

Buy Limit Order

With a buy limit order, a stock is purchased at your limit price or lower. Your limit price should be the maximum price you want to pay per share.

Example

MEOW is currently trading at $10 per share, but you only want to pay $5 per share at most. You should set your limit price to $5.

If MEOW drops from $10 to $5 or lower, you will buy shares for $5 at most.

If MEOW doesn’t drop to $5, your order won’t execute.

These examples are shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.

Sell Limit Order

With a sell limit order, a stock is sold at your limit price or higher. Your limit price should be the minimum price you want to receive per share.

Example

MEOW is currently trading at $10 per share, but you want to receive at least $15 per share. You should set your limit price to $15.

If MEOW rises from $10 to $15 or higher, your shares will be sold at least $15.

If MEOW doesn’t rise to $15, your order won’t execute, and you’ll keep your shares.

These examples are shown for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.

@Robinhood20190822-930961-2814809

What are funds (ETFs)?

Funds are a quick way to invest in a group of companies all at once. Funds you can invest in on the stock market are called Exchange Traded Funds or ETFs.

There are many different types of ETFs that focus on different sectors like clean energy, technology, or even social impact.

When you invest in an ETF, the value of your investment will depend on how the collective group of companies is doing.

So, what’s the strategy?

Most investment experts will tell you it’s important to have a diverse portfolio of investments to help reduce risk.

Diversification means investing in a variety of companies and sectors so that your portfolio’s performance is not tied to one company. This way, if one company or sector is struggling, it doesn’t hurt your entire portfolio.

ETFs are a great way to get instant diversification. For example, the Vanguard S&P 500 ETF (VOO) is a popularly held ETF which allows you to invest in the 500 largest US companies.

You can learn more about risks associated with investing in Exchange Traded Products.

How do I find an investment?

Many people choose to invest in companies and industries they’re passionate about and believe will be successful in the long-term.

The reason is that when you invest in a company, you own a piece of that company. The value of your investment will depend on how that company is doing. If the company is doing well, your piece of that company becomes worth more.

So, what’s the strategy?

Step 1: Find a Company

Think about different products and brands you can’t live without:

What products did you use today?

What stores do you visit regularly?

Talk to friends and family:

What industries do they work in?

What do they invest in and why?

Think about causes that are important to you:

Are there companies or industries that support these causes?

Stay up to date on the news:

What companies and industries are doing well?

Step 2: Do Your Research

If there’s a specific company you want to invest in, you may want to learn more about:

Their annual profits and losses

Consumer demand for their product or service

Their executive team

You can do some of this research on Robinhood by scrolling down on a company’s page. If what you learn gives you confidence in a company’s long-term performance, you may consider investing in it.

If there’s a specific industry that you feel has significant growth potential or room for innovation, you may consider investing in a fund. Funds ( ETFs ) are a great way to invest in an industry or group of companies at once.

Trade options the Robinhood way: quick, straightforward, and commission free.

There’s no commission fee to buy or sell options, nor is there a monthly fee. You also don’t need to have a Gold subscription to get startedyour Instant account supports options trading too!

A driving commitment to offer our customers the best experience at low cost, coupled with the ability to create state-of-the-art technology pushed us to develop commission-free options trading. Because our entire business is built on technology, we can afford to cut out the antiquated overhead many other brokerages maintain, and the savings get passed on to you.

No base fees.

No exercise and assignment fees.

No per-contract commission.

Options commission fees are officially a thing of the pastyou can thank us later.

Before You Begin

We’ll need you to update your investment profile before you can trade options.

You need to have stock-trading experience before you can trade options.

Note: If you start options trading in your Cash account, we’ll automatically upgrade you to an Instant account.

Robinhood Financial offers three types of accounts, each designed to suit your investing needs.

Robinhood Instant

When you sign up for a new account, you’ll automatically start with a Robinhood Instant account, which is a margin account. This means you’ll have access to instant deposits and extended-hours trading. You also won’t have to wait for your funds to process when you sell stocks or make a deposit (up to $1,000).

Robinhood Gold

A Robinhood Gold account is like a Robinhood Instant account, but gives you access to more buying power and larger instant deposits.

Robinhood Cash

A Robinhood Cash account allows you to place commission-free trades during the standard and extended-hours trading sessions. You won’t have access to instant deposits or instant settlements. You can downgrade to a Cash account from an Instant or Gold account at anytime.

Note: We don’t offer joint accounts, trusts, custodial accounts and IRA products at the moment, but we hope to in the future!

What’s Level II Market Data?

We’ve partnered with Nasdaq to give Robinhood Gold members access to Level II Market Data powered by NASDAQ Totalview.

Level II Market Data shows multiple bids and asks for any given stock so investors can better determine the availability or desire for a stock at a certain price. Bids are like limit buy orders that other investors have open on the markets. Similarly, asks are like limit sell orders from other investors. Like any limit order, each bid and ask is represented by the price and quantity of the order.

Level II Data is unique because it shows more than just the best bid and best ask on the market. It also shows the full depth of orders on the market, including quantities at the individual bids and asks.

How do investors use Level II Market Data?

Level II market data gives investors more information to make investment decisions by showing changes in the bids and asks on the NASDAQ stock market. Some traders compare how many shares are on each side of the market as an indication of the short term direction of the price.

Investors often use this data in conjunction with the price chart representing recent trades. The price chart on Robinhood is the main chart available on our stock page.

How is this related to the main price chart?

The main price chart on the stock page represents the prices of recent trades on that stock. On the other hand, Level II Data represents a current snapshot of pending orders for that stock. If one of the open orders on the Level II chart executes, it will become a trade and appear as the next data point on the price chart.

For example, suppose an investor places a limit order to buy 10 shares of MEOW at $100. While the order is pending, it will appear on the Level II Chart as a bid. Later, suppose the order executes at $98, it will drop off the Level II chart and instead will appear as a datapoint on the main chart at $98.

Note that only orders from investors directly participating on the NASDAQ stock market will appear on the Level II chart from Nasdaq.

How is this related to the Bid and Ask Spread?

The highest bid and the lowest ask form the bid/ask spread. This represents the best offer to buy or sell a specific stock on the market. The gap between the best bid and the best ask is called the spread.

For example, say the best bid is to buy 10 shares of MEOW at $100 and the best ask to sell 10 shares of MEOW at $110. This means that MEOW’s spread is $10 wide. If you place a market order to buy MEOW, you would likely pay $110. Similarly, if you place a market order to sell MEOW, you would likely receive $100.

Why are instant bank transfers useful?

With Robinhood Gold, you get larger instant deposit amounts so you can use your money immediately instead of waiting five business days for your funds to clear. If you see an opportunity in the market, you can invest by increasing your buying power right away.

What’s my instant deposit limit?

With Robinhood Gold, your instant deposit limit is based on your account balance:

$50k instant deposit limit if your portfolio value is over $50k

$25k if your portfolio value is over $25k

$10k if your portfolio value is over $10k

$5k for every other Gold user

Without Robinhood Gold, you get $1,000 in instant deposits, regardless of the value of your account. You can always track your instant deposit limit in the Instant Deposit Health section of the Account Overview.

Why isn’t my full bank deposit available right away?

If you deposit more funds than your instant deposit limit, you’ll only get instant availability up to your limit. This means that you’ll have to wait for five business days for the additional funds over your limit to clear.

For example, if you have $3,000 in your account, your instant deposit limit will be $5,000. If you make a $6,000 deposit from your bank, $5,000 of the new funds will be available instantly. The remaining $1,000 will become available in five business days.

Can I increase my instant deposit amount?

Yes! As described above, your instant deposit limit on Robinhood Gold is determined by your account value. You can increase your instant deposit limit by depositing more money to meet the next limit tier. Similarly, if your account value decreases below a cutoff amount, your instant deposit limit will decrease to the lower limit tier.

For example, if you have $3,000 in your account, your instant deposit limit will be $5,000. If your account value increases to $10,000, your instant deposit limit will increase to $10,000.

Can I lose access to instant deposits?

Instant deposit access is based on the expectation that your recentdeposits from your bank to Robinhood will successfully complete. If your bank deposits don’t clear, you may lose access to instant deposits.

If your instant deposits get restricted, you can check the Instant Deposits Health section of the Account Overview for steps on how to regain access.

What is Morningstar?

Morningstar is an independent investment research company with a dedicated team of investment professionals researching companies and their stocks. Morningstar publishes their findings and analyses in an easily-digestible format for investors at all experience levels.

What are Morningstar Research Reports?

We’ve partnered with Morningstar to provide Robinhood Gold members unlimited access to their premium, in-depth stock research reports. These reports are available on 1,700 stocks and are updated frequently to reflect important company events.

Each report covers professional analysis and ratings on the company’s business strategy, economic moat, fair market value, risk, and leadership. You can read these reports to learn what professionals think about a company’s outlook and make more informed investment decisions.

How often are new reports published?

Morningstar analysts typically publish new reports for stocks near earnings reports and when there are major events at the company. These events may include new product launches, mergers with another company, or a change in leadership (like the company’s CEO).

How do I access these reports?

You can see Morningstar ratings and download the full reports from the stock page in the app or on the website. We’ve even built a reader to make it easier to read reports on your phone.

You can upgrade to Gold on the Robinhood app or on our website.

Can I try Gold for free?

You can try Robinhood Gold for free for the first 30 days. After your free trial ends, you will be charged $5 every 30 days at the beginning of your billing cycle.

The free trial only covers the $5 monthly fee and does not cover your margin interest. This means that if you borrow over $1,000, you’ll still pay interest at the end of your billing cycle.

Where can I upgrade to Robinhood Gold?

You can upgrade to Robinhood gold on the Robinhood app or on our website.

To upgrade to Gold in your mobile app:

Tap on the Account icon in the bottom right corner of the screen.

Tap Settings

Tap Get Robinhood Gold.

To upgrade to Gold on our website:

Tap the Account menu bar at the top right of the screen

Tap Robinhood Gold.

Who can upgrade to Gold?

Any Robinhood user can upgrade to Robinhood Gold. The $5 monthly fee gives you access to the premium features. When you upgrade to Robinhood Gold, you can determine whether or not you are suitable for margin and if you want to use it.

Margin isn’t for mecan I still use Robinhood Gold?

Robinhood Gold is for every investor, whether or not you want to invest on margin. You can sign up for Robinhood Gold, turn margin trading off, and use all of the other premium features.

Even if you’re not suitable for margin, you can still sign up for Gold and use the other premium features.

What are the requirements for margin?

Federal regulations require you to have $2,000 in your account and a suitable investment profile in order to use margin. Suitability is determined by asking you a few questions in the app about your investment experience, goals, and sensitivity to risk. You can enable margin while you’re on Gold by (1) increasing your account value to $2,000 by depositing funds and (2) updating your investment profile.

Transferring

How do I transfer money to Robinhood?

You can link a bank account to your app and fund your account by transferring funds from your bank account. These funds appear as Pending in your history until the funds clear in 5-6 business days.

Cash Management customers can also direct deposit their paycheck into their brokerage account, or use their ACH account number and routing number to move funds from an external bank account.

How do I transfer money to my bank?

You can transfer money to a pre-linked bank account. To transfer funds to your bank from your brokerage account:

Go into your Cash Management tab

Tap Move Money

Tap TransferTo Your Bank

Select the external bank account you want to move funds to

Input the amount you want to transfer to your bank

Transfers will take 3-5 business days to complete.

How do I link Robinhood with other accounts?

To link your brokerage account with other accounts, you’ll need your ACH account number and routing number. The ACH account number is your brokerage account number with a prefix. The routing number identifies the financial institution. You can find your ACH account number and routing number in your app by tapping the “Move Money” button under the Cash Management tab.

Since your account number and ACH number are provided by Sutton Bank, transfers to and from your brokerage account may appear as transfers to and from Sutton Bank in your transaction history at other institutions.

You can find your ACH account number and routing number in your app by tapping the “Move Money” button under the Cash Management tab.

Direct Deposit

How do I set up direct deposit?

You can set up direct deposit in two ways:

Set up online on your employer’s site. We’ll provide all the information you need to fill this out on the Cash Management tab under “Move Money”.

Submit a pre-filled form to your HR or payroll/accounting team.

How long does direct deposit take to be in effect?

Once you set up direct deposit successfully, your next payroll cycle should be deposited into your brokerage account.

How do I cancel direct deposit?

If you change your mind, you can cancel your direct deposit by either going to your employer’s site or by submitting a form requesting the change to your employer’s HR or payroll team.

What if I receive paper checks from my work?

You’ll have to ask your employer to switch to direct deposit for your paychecks. Simply submit the pre-filled form and direct deposit should be set up in 1-2 pay cycles (approximately 2-4 weeks).

ATMs

Where can I find in-network ATMs?

Our 75,000+ in-network ATMs (ATMs in the Allpoint or MoneyPass networks) are located across all 50 U.S. states, Puerto Rico, and the U.S. Virgin Islands, as well as 15,000+ international locations. You can easily search for your nearest location in the app or drop into your local 7-11, Target, Walgreens, or Costco.

In order to search for the nearest in-network ATM, use the “Find ATMs” section in your app to find the nearest withdrawal and/or cash-back locations.

To find an ATM near you:

Go to theCash Management tab of the app.

Scroll to the bottom of the page.

Tap See Nearby ATMs.

Note: You’ll need to enable location permissions to use the ATM Finder.

You can also search for ATMs through the Allpoint and MoneyPass ATM finders:

A llp oint ATM finder

MoneyPass ATM finder

How much does an out-of-network ATM cost?

Using an ATM machine outside of the Allpoint or MoneyPass networks may incur a fee set by the ATM operator. Out-of-network fees may vary in amount, and will be added to the total withdrawal amount that you see in your app history.

To avoid being charged, be sure to use the “Find ATMs” section in your app to find the nearest in-network ATM.

Limits

Is there a withdrawal limit?

Cash ATM withdrawal limits

You can withdraw up to $510 per day and $5,000 per month at an ATM or via point of sale cash back, whether nationwide or internationally.

Withdrawal initiated from Cash Management

You can initiate a withdrawal from Robinhood using a pre-linked bank account. You can withdraw up to $50,000 per business day.

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How are you paying 2.05\% APY*?

Robinhood doesn’t pay interestinstead, we sweep your money into our network of FDIC insured program banks that hold and invest your cash. These FDIC insured program banks pay interest on deposits, which you receive as part of Cash Management.

What does it mean to earn 2.05\% APY*?

You’ll earn 2.05\% APY* on your uninvested cash that is swept to the banks in our program. This means that if you start January 1st with $100 in uninvested cash that is swept to the program banks and don’t deposit or withdraw any funds for the entire year, you’ll earn $2.05 by January of the following year, compounding included.

You’ll be paid interest by the program banks monthly, and you can keep track of how much interest you’ve earned on the Cash Management tab.

Could the interest rate change?

The Cash Management Annual Percentage Yield (APY) paid by program banks is 2.05\% as of October 8, 2019. The APY your cash earns is determined by the program banks, and is subject to change at any time.

What balance am I earning interest on?

You earn interest on your uninvested cash that’s swept to the program banks. You only start earning interest once those banks receive your cash. This could be affected by the timing of trades, deposits, or withdrawals.

For example, if you purchased a stock, the cash might not be taken out of your account until two business days later when the trade settles. In this case, you would continue to earn interest during those two days, even if that cash is no longer available to spend.

The reverse is true as wellif you sell a stock, you may not get the cash until two days later, after the trade settles. In this case, you would only start earning interest on that cash after it settles and is swept it to the program banks.

What’s uninvested cash?

Uninvested cash is any available cash that you have in your brokerage account that you have not yet invested or spent. This money is what is swept (or moved) to program banks where it starts to earn interest.

For those with a Robinhood Gold account, this doesn’t include margin.

You can find the amount of swept cash in your app under “Swept Cash.”

Is there a minimum or maximum amount I can earn interest on?

No, you’ll start earning interest on your first cent. There’s also no maximum cash sweep balance that you can earn interest on, but cash deposited to these banks will only be covered by FDIC insurance up to a total maximum of $1.25 million (up to $250,000 per program bank, inclusive of deposits you may already hold at the bank in the same ownership capacity).

How is daily interest calculated?

Interest is accrued daily based on your end of day balance at the program banks. Your balance is multiplied by the daily interest rate, which is derived from the 2.05\% annual percentage yield (APY)*. For example, at 2.05\% APY* and $1000 end of day balance, the daily interest accrual can be calculated as follows:

Daily interest rate = (1 + 0.0205)^(1/ 365) - 1 = 0.0055597\%

Daily interest accrual = $1000 * 0.0055597\% = $0.055597

This means someone with $1000 would earn about $0.05 in interest that day. With daily compounding, the next day’s interest would be calculated on a $1000.05 balance, and assuming no deposits or withdrawals, the account would end the year with $1020.50 at 2.05\% APY.

For leap years, we would use the same formula as above for daily interest but divide by 366 days instead of 365.

Will my interest be compounded daily?

Yes, interest on your uninvested cash that is swept to the program banks will be compounded daily. Each day, you earn interest on your balance, and that earned interest itself also earns interest. Over time, your uninvested cash multiplies and grows on its own. Compound interest is a powerful tool to help build and accumulate wealth over time. Interest is paid on a monthly basis.

When do I get paid?

You’ll be paid interest once a month on the last business day of the month, which will include interest through the end of the month. If the last day of the month falls on a non-business day, you will be prepaid interest for those days on the last business day.

For example, if the last day of the month is a Sunday, that month’s interest will be paid on the preceding Friday, along with what you would earn on Saturday and Sunday.

Do I need to make purchases with my debit card to earn interest on my money?

No. You don’t need to make purchases with your debit card to earn interest. You’ll earn 2.05\% APY* on all of your uninvested cash swept to program banks.

*The Annual Percentage Yield (APY) paid by program banks is 2.05\% as of October 8, 2019. APY might change at any time at the program banks’ discretion.

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A low-priced stock, or “penny stock,” generally refers to a stock issued by a company that’s valued at less than $5 per share.

Investing in low-priced stocks is considered speculative and involves considerable risk.

Check out the Low-Priced Securities Disclosure and the Investments You Can Make on Robinhood for more information.

Exercise, Assignment, & Expiration

An option is a contract between a buyer and a seller. Thesecontracts are part of a larger group of financial instruments called derivatives. This means that the instrument is derived from another securityin our case, another stock.

Options Versus Stocks

Options are a way to actively interact with stocks you’re interested in without actually trading the stocks themselves. When you trade options, you can control shares of stock without ever having to own them.

Call Options

Owners of call options expect the stock to increase in value, while sellers of call options expect the stock’s value to decrease or remain the same.

Buying a call option gives you the right, but not the obligation, to buy 100 shares of the underlying stock at the designated strike price. The value of a call option appreciates as the value of the underlying stock increases.

Selling a call option allows you to collect the premium while obligating you to sell 100 shares of the underlying stock to the owner at the agreed-upon strike price.

Example

What if you think the price of the stock is going up?

In this case you'd buy to open a call position. Buying a call gives you the right to purchase the underlying stocks from the option seller for the agreed-upon strike price. From there, you can sell the stocks back into the market at their current market value if you so choose.

For example, you think MEOW's upcoming product release is going to send the price of the stock soaring, so you buy a call for MEOW at a $10 strike price with a $1 premium (the cost of the contract) expiring in a month.

Let's break that down.

Symbol: MEOW

Expiration: A month from now

Strike Price: $10

Premium: $1

The product release gave the stock a bump, and the day your contract expires, MEOW hits $15. Great! This means you can sell the contract in the market for at least $5 and earn at least a $4 profit per share.

The reason the contract is worth at least $5 is that you could exercise the contract to buy the shares at $10, then sell the stocks in the market at their current trading price of $15. You'd earn $4 per share if you exercised the contract instead of selling it.

Put Options

Owners of put options expect the stock to decrease in value, while sellers of put options expect the stock’s value to increase or remain the same.

Buying a put option gives you the right, but not the obligation, to sell 100 shares of the underlying stock at the designated strike price. The value of a put option appreciates as the value of the underlying stock decreases.

Selling a put option allows you to collect the premium, while obligating you to purchase 100 shares of the underlying stock from the owner at the agreed-upon strike price.

Example

What if you think the price of the stock is going down?

In this case, you could buy to open a put option. Buying a put gives you the right to sell the underlying stock back to the option seller for the agreed-upon strike price if you so choose.

For example, you think MEOW’s upcoming earnings call is going to tank the price of the stock, so you buy 1 MEOW put option expiring in a week with a strike price of $10 for a premium (the cost of the contract) of $2.

Let’s break that down.

Symbol: MEOW

Expiration: A week from now

Strike Price: $10

Premium: $2

Your prediction is right, and within the week MEOW is trading at $6. Your put option is now worth at least $4, so you can sell it in the market for a profit (less the cost of your $2 premium). You’ve just made $200 on MEOW’s decrease in value.

The Strike Price

The strike price of an options contract is the price at which the options contract can be exercised.

Think of the strike price as the anchor of your contract: If you’re buying a call, your call is profitable if the value of the stock goes above the strike price (plus whatever premium you paid). If the value of the stock stays below your strike price, your options contract will expire worthless. Remember, you’re not actually buying shares of the stock unless you exercise your contract. This is because the contract gives you the option to buy the actual shares of the stock at the strike price.

The Ask Price

The ask price is the amount of money sellers in the market are willing to receive for an options contract. The ask price will always be higher than the bid price.

The Bid Price

The bid price is the amount of money buyers in the market are willing to pay for an options contract. The bid price will always be lower than the ask price.

Buying and Selling an Options Contract

Options can be tricky, so it’s important to know exactly how the actions you take will get you closer to your goal:

Buying to open an options position means that you’re purchasing the contract. You’re the owner, and have the right to place an order to sell the contract back into the market, to exercise the contract, or to let it expire.

Selling to close a position means that you’re selling a contract that you own back into the market.

Selling to open an options contract means that you’re selling the contract to a buyer to collect a premium. You have the obligation to make good on the contract if you’re assigned, or you could buy it back in the market.

Buying to close an options position means that you’re buying back a contract that you sold. In this case, you cannot be assigned on the contract you initially sold.

Exercise and Assignment

The owner of an options contract has the right to exercise the contract, let it expire worthless, or sell it back into the market before expiration. The owner of the contract is likely to exercise the contract if it’s “in the money.” On the other hand, the person who sold the contract to collect the premium is assigned when the owner of the contract exercises it.

For more information on exercise and assignment, check out our article .

Knowing When to Buy or Sell

When opening a position, you can either buy a contract with the intention of exercising it when it reaches its strike price, or you can sell a contract to collect the premium and hope to not be assigned. Buying an options contract makes you the owner/holder of the contract, and in return for paying the premium, you have the right to choose to either exercise the contract, let it expire worthless, or sell it back into the market before expiration. The seller of an options contract collects the premium paid by the buyer, but is obligated to buy or sell the agreed-upon shares of the underlying stock if the owner of the contract chooses to exercise the contract.

Buying to open a call: You expect the value of the stock to rise; you pay the premium; you have the right to buy 100 shares at the strike price if you exercise.

Selling to open a call: You expect the value of the stock to drop or stay the same; you collect the premium; you have the obligation to sell 100 shares at the strike price if you’re assigned.

Buying to open a put: You expect the value of the stock to drop; you pay the premium; you have the right to sell 100 shares at the strike price if you exercise.

Selling to open a put: You expect the value of the stock to rise or stay the same; you collect the premium; you have the obligation to buy 100 shares at the strike price if you’re assigned.

The Premium

Since the owner has the right to either exercise the contract or let it simply expire worthless, she pays the premiumthe per-share cost for holding the contractto the seller. As a buyer, you can think of the premium as the price to purchase the option. If you buy or sell an option before expiration, the premium is the price it trades for. You can trade the option in the market the same way you’d trade a stock. The premium is not arbitrary, as it’s tied to the value of the contract and the underlying security: the underlying stock’s price, the underlying stock’s volatility, and the amount of time left until expiration all influence an option’s premium.

Rights and Obligations

The owner has the right to exercise the contract or not, whereas the seller has the obligation to make good on the contract if she’s assigned. When the owner of the contract exercises it, the seller is assigned.

Time Value

The closer an option is to expiring, the less time value the option will have. The further away a contract is from its expiration date, the more potential there is for price movement, which would make the contract trade at a higher price.

The Break-Even Point

The break-even point of an options contract is the point at which the contract would be cost-neutral if the owner were to exercise it. It’s important to consider the premium paid for the contract in addition to the strike price when calculating the break-even point.

Contracts

It’s important to also keep in mind that contracts are typically for 100-share blocks. In the above example, you’d be entitled to buy 100 shares of MEOW at the agreed-upon strike price. Most contracts on Robinhood are for 100 shares.

Though options contracts typically represent 100 shares, the price of the option is shown on a per-share basis, which is the industry standard.

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What are Robinhood Snacks?

Robinhood Snacks (“Snacks”) are curated digests of business news stories delivered daily and weekly. Snacks can be delivered in written, audio, and/or video formats. Robinhood Snacks’ goal is to make business and financial news accessible to all. This is a vital component of Robinhood’s greater missionTo Democratize Our Financial System.

Snacks are not research reports. Snacks are not recommendations to buy or sell securities. And Snacks are not offers to buy or sell securities. They also should not be the basis of any investment decisions. Any opinions shared through Robinhood Snacks are those of the Robinhood Snacks team, not Robinhood Financial LLC, Robinhood Markets, Inc., or any of their subsidiaries or affiliates.

How is each Snacks created?

The Robinhood Snacks team has editorial independence. Authority over all news decisions that appear in Snacks, including what news we cover, our tone, and any accompanying media, lies with the Snacks news team.

Robinhood Snacks Managing Editors conduct daily research through a variety of primary (e.g., press releases, financial reports, public statements, economic data, social media accounts, interviews, etc.), and secondary sources (e.g., Fortune, The Wall Street Journal, The New York Times, Bloomberg, CNBC, TechCrunch, Jalopnik, Business Insider, Fox Business, etc.). Managing Editors then determine the best stories to be featured, covering a mix of headline news as well as less reported, yet relevant stories. We won’t (and can’t) cover everything, but Snacks aims to deliver a well-rounded serving of news.

We will report the facts fairly and accurately, and provide “Takeaways” based on our understanding of the trends, our business experiences, and our personal opinions. We deliver the crucial information and our unique perspective so you can assess the news critically.

How does Snacks address errors and conflicts of interest?

Due to the inherent conflict of interest, we won’t write news stories about Robinhood. Snacks will cover Robinhood’s competitors though, just as we would any other company.

If there are substantive errors within published Snacks, corrections will appear in the following day’s material or within a business day of discovery of the error.

When the author or household member of an author of a Snacks news story owns stock in a company mentioned, we’ll disclose it at the bottom of our newsletter or at the end of the podcast.

How do I subscribe?

All Robinhood users are opted-in to the Robinhood Snacks weekly email newsletter, which is distributed Monday mornings at 6:30am EST.

Robinhood account holders and non-account holders alike can subscribe free to the daily Robinhood Snacks email newsletter at Snacks.robinhood.com.

To change your subscription preferences, you can click “Manage your subscription preferences” at the bottom of the newsletter.

How do I unsubscribe?

You can unsubscribe from any Snacks newsletters by clicking “Manage your subscription preferences” at the bottom of the newsletter.

What is the difference between the Daily and the Weekly?

The Snacks weekly newsletter is a “week in review” format covering business news stories and trends over the past week, as well as a look ahead to the coming week, delivered to your inbox weekly at 6:30 am EST. The Snacks daily newsletter highlights our top 3-4 news stories of the day, delivered to your inbox every weekday at 6:30 am EST.

How do I access the podcast?

The Snacks Daily podcast is published at 5:50am EST every weekday, and linked to in every Snacks newsletter as well as on Snacks.robinhood.com. You can subscribe to the podcast on iTunes, Spotify, Google Play, or wherever you get your podcasts.

What are candlestick charts?

Candlestick charts are an efficient way to look at a lot of information about a stock's price at once. By showing how much the price has moved up or down in a certain time period, candlestick charts help investors better understand how the price is moving.

To switch between line and candlesticks charts on mobile:

You can enable candlestick charts on your app by tapping the candlestick iconjust past the 5Y view below your chart. You can disable candlesticks by tapping the same icon again.

To switch between line and candlesticks charts:

On the chart page, you can toggle between line and candlestick charts. Click the toggle button near the top right of the page. This will be when viewing a line chart and a when viewing a candlestick chart.

Click the button and select either “Line Chart” or “Candlestick Chart"

How do I read a candlestick chart?

Each candlestick shows you four pieces of information: the open, the high, the low, and the close price during a certain time period.

The body, or thick part, of the candlestick represents the difference in open and close prices. If there is no body, it means the open and close prices are the same. The wicks, or thin lines, of the candlestick represent the high and low prices in a given time period.

Open Price:The stock price at the beginning of the time frame of the candle

Close Price:The price of the last trade during the time frame of the candle

High Price:The highest price reached during the time frame of the candle

Low Price:The lowest price reached during the time frame of the candle

Bullish Candlesticks

A “bullish candlestick” is green showing that the stock’s price has increased. This means the close price is above the open price.

Bearish Candlesticks

A “bearish candlestick” is red showing that the stock’s price has decreased. This means the close price is below the open price.

Range

The price difference between the top and bottom of the thin line shows how volatile the price was in that time frame. Tall lines indicate that the price has been very volatile. Short lines imply that the price was relatively stable moving in one direction during that time frame.

Volume

On stock charts, additional bars below the candlesticks represent the total number of shares traded during the time period for that candlestick. Investors use this to understand the interest in a stock.

dividends

You can create a customized stock and cryptocurrency watchlist to track the assets that mean the most to you.

Add a Stock or Cryptocurrency to Your Watchlist

iOS Android Web

To add a stock or cryptocurrency to your Watchlist on your iOS app:

Tap the magnifying glass icon at the bottom of your screen.

Type in the name or symbol of the stock or cryptocurrency.

Tap the Add symbol.

To add a stock or cryptocurrency to your Watchlist on your Android app:

Tap the magnifying glass icon at the bottom of your screen.

Type in the name or symbol of the stock or cryptocurrency.

Tap the Add symbol.

To add a stock or cryptocurrency to your Watchlist on your web app:

Navigate to the asset’s Detail page by searching for the asset and clicking on it.

Click Add to Watchlist under the right order panel.

Remove a Stock or Cryptocurrency From Your Watchlist

iOS AndroidWeb

To remove a stock or cryptocurrency from your Watchlist on your iOS mobile app:

Scroll down to your Watchlist on the Investing tab.

Swipe left on the specific stock or cryptocurrency.

Tap the red Delete button.

To remove a stock from your Watchlist on your Android mobile app:

Scroll down to your Watchlist on the Investing tab.

Tap and hold on the specific stock or cryptocurrency.

Tap the Delete button.

To remove a stock or cryptocurrency from your Watchlist on your web app:

Navigate to the asset’s Detail page by searching for the asset and clicking on it.

Click Remove from Watchlist under the right order panel.

Reorder the Assets in your Watchlist

You can reorder the stocks in your Watchlist on your mobile app by tapping and holding the stock, then dragging it down to a new position in your Watchlist.

You can’t, however, reorder the asset types in your Watchlist. Cryptocurrencies you’re watching will appear first, followed by your options contracts and stocks.

Cards

Cards instantly surface relevant information, tailored specifically to you. In your Cards you’ll find:

New Features: Feature Cards alert you anytime major new features or products are added to Robinhood. You’ll receive cards that introduce and explain these new features.

Account Updates: Account Cards notify you of the status of transfers, orders, and . This includes pending transfers, transfer completions, executed orders, scheduled dividends, and dividend payouts.

Market Updates: Top Movers Cards show you the day’s largest percent gains and losses following market close.

News Updates: Top News Cards bring you breaking news related to the financial markets. If you’re interested in reading an article, tap the card to view the article in your browser.

You can find your Cards on the Investing tab, just above your Watchlist.

Swipe left or right view your new cards each time you open your app.

Pending Orders

In your mobile app, you can view your pending market orders and limit orders for stocks. You’ll see (+) and (-) icons on the stocks in your watchlist you have pending orders for. These icons correspond to buy and sell orders respectively. You can tap on the stock like normal to view the stock’s Detail page, where the pending orders on that stock will be listed directly under the chart.

Market Price

When we talk about a security’s “market price,” we’re referring to the price of the most recent trade for that security. Robinhood partners with Nasdaq to provide real-time last sale prices via Nasdaq Last Sale. With more liquidity than any other U.S. exchange, the Nasdaq is one of the most accurate sources for real time trade data.

Bid & Ask Spread

You can find consolidated real-time market data by pressing “Market Price” on the trade entry screen. Consolidated real-time market data includes the last sale, best bid, and best ask price across all U.S exchanges. Each quote includes the price, quantity of shares, and the exchange on which it is available.

Real-time market data provides insightful information into the supply and demand for a stock just before you place a trade. The bid shows the highest price a buyer is willing to pay, the associated number of shares at that price, and the specific stock exchange that quote comes from. Similarly, the ask represents the best offer from a seller on the market. Federal regulations require that your order executions fill at the National Best Bid or Offer (NBBO), which is the best available bid (for sells) or the best available ask (for buys) at the time your trade is executed.

Margin maintenance is the minimum portfolio value you need to maintain to avoid borrowing too much money in your account. You can see your margin maintenance amount in your account settings.

Each stock you own has its own maintenance requirement, based primarily on its volatility. Stocks that are known to be risky, for example, typically have higher maintenance requirements to ensure you have more cash in your account to cover the position if it decreases in value.

If your account dips below the margin maintenance, you’ll be issued a margin call.

Example: Low-Volatility Stock

You have $5,000 in cash and hold no positions. You have $5,000 margin available for a total buying power of $10,000.

ABC is trading at $20.00 per share and has a stock maintenance requirement of 25\%. This means a $10,000 purchase would require $2,500 ($10,000 x 0.25) in account value to back the purchase. You’ll be able to use all $10,000 of buying power to purchase 500 ABC at $20.00 per share.

Example: High-Volatility Stock

You have $10,000 in cash and hold no positions. You receive $10,000 of margin available for a total buying power of $20,000.

XYZ is trading at $50.00 per share and has a stock maintenance requirement of 75\%. This means a $20,000 purchase would require $15,000 ($20,000 x 0.75) in account value to back the purchase. You won’t be able to use all $20,000 of buying power to purchase XYZ since your account value is lower than the stock’s maintenance requirement.

We process your dividends automatically. Cash dividends will be credited as cash to your account by default, but not automatically reinvested in the stock.

You can view your received and scheduled dividends in your mobile app:

Tap the Account icon in the bottom right corner.

Tap History.

Tap Filter.

Tap Dividends.

send us a note

If you have dividends that are scheduled but haven’t been paid yet, they’ll appear in the “Pending” category. You’ll find the scheduled date and amount listed next to the stock’s symbol. Recently-paid dividends are listed just below pending dividends, and you can click or tap on any listed dividend for more information.

In order to qualify for a company's dividend payment, you must have purchased shares of the company's stock before the ex-dividend date and hold them through the ex-dividend date.

You will not qualify for the dividend if you buy shares on the ex-dividend date or later, or if you sell your shares before the ex-dividend date.

Dividends that are paid in foreign currency will not display as pending, and only appear in History after your account has been credited. Keep in mind, dividends for foreign stocks take additional time to process. You'll most likely receive your dividend payment 2-3 business days after the official payment date.

If you don’t see a dividend, or if you have questions regarding the amount, please .

Reversed Dividends

Sometimes we may have to reverse a dividend after you have received payment. If this situation occurs, you will see the reversed dividend in the Dividends section of the app. You can click or tap on any reversed dividend for more information.

We describe some of the most common dividend reversal scenarios below.

Rate Update

If the rate was updated after payment was made to users, we will reverse the inaccurate dividend and repay using the correct rate. The correct dividend and payment will show up in the app as paid. These rate changes are determined by the issuer, not by Robinhood. Common reasons include:

The company amends the foreign tax rate.

The company amends foreign currency to USD/ FX rate.

The company amends the dividend rate(s).

The company amends one of the following critical dates: ex-date, record date, or payment date.

Complete Reversal

In another scenario, we may pay out a dividend that gets recalled and we need to reverse the dividend completely. The dividends may be recalled by the DTCC or by the issuing company. If this situation occurs, you will see the reversed dividend in the Dividends section of the app, as well as on your monthly account statement.

Dividend Reinvestment (DRIP)

Robinhood doesn’t currently support dividend reinvestment, but we may in the future. We’ll be sure to update you when this feature is available.

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iOS Android Web

Navigate to the cryptocurrency’s Detail page.

Tap Trade.

Tap Sell.

Tap Order Types in the upper right order.

Select your preferred order type.

Confirm your order.

Swipe up to submit your order.

Navigate to the cryptocurrency’s Detail page.

Tap Trade.

Tap Sell.

Tap Order Types in the upper right order.

Select your preferred order type.

Confirm your order.

Swipe up to submit your order.

Navigate to the cryptocurrency’s Detail page.

Click Sell in the order window on the right side of the screen.

Enter the amount you’d like to sell.

Click Review.

Confirm your order.

The market data displayed in this demo is not real-time.

A market order is a type of stock order that executes at the best available price on the market. Market orders have priority over other order types, so they generally execute immediately during regular and extended trading hours. Market orders are typically used when investors want to trade stocks quickly or avoid partial fills.

Keep in mind, you aren’t guaranteed a price with a market order. Robinhood collars market orders by 5\% to help cushion against any significant upward price movements. Also, not all stocks support market orders during extended hours. If the market is closed, the order will be queued for market open. You can learn more by checking out Extended-Hours Trading.

Note: The price displayed in the app is the last sale price, and might not be the best available price when the order is executed.

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Before we can enable options trading in your account, we need to make sure your investment profile is up to date so we can determine if options investing is suitable for you given your risk tolerance. No changes to your profile are necessary; just confirm it’s up to date.

There are a few reasons why your stock orders might not have been filled yet.

Limited Volume

Your order won’t be filled if there aren’t enough shares available at the specified price or number. This occurs most frequently with large orders placed on low-volume securities. Keep in mind that there must be a buyer and seller on both sides of the trade for an order to execute.

Market Open Conditions

If a market maker starts trading later than market open, you may see delays in your order getting filled. Also, if trading volatility is high, it might prevent the order from filling immediately once the market opens.

When it comes to options, listed equity options don’t begin trading until trading has begun at the primary listing exchange for the underlying stock. This is most common for NYSE symbols, where the opening auction may not occur until a few minutes after 9:30 AM EST.

Extended Hours

During extended trading hours (99:30 AM and 46 PM EST), orders may not fill due to lower volume and wider price spreads when compared to normal trading hours (9:30 AM4 PM EST). Some stocks may also have limited tradability during extended trading hours.

Limited Support at Execution Venues

Orders that exceed certain price or quantity thresholds may not be supported by our venues. When a stock is no longer supported on Robinhood, we go ahead and cancel any pending orders for you.

Limit or Stop Price Hasn’t Been Reached

If your stop or limit price hasn’t been reached, your order will remain pending until there’s a buyer or seller willing to trade at your specified price. Keep in mind, the price displayed on the Robinhood app is the last trade price, not the price at which shares are currently available. This means that if there are no shares currently available at your limit price, your trade may not executeeven if your limit price is the same as the price displayed.

Limit Price Reached, but Order Not Filled

The success of your limit order isn’t necessarily due to time and price priority on the markets. The order fill rate depends on a number of elements, like market volatility, size and type of order, market conditions, and system performance.

Unstable Market Conditions

When there is a massive price drop or spike and no purchases or sales, respectively, a market order may not be filled. While rare, this can occur when there are market halts for price volatility.

IPO

Orders placed on the day of an IPO may not always fill due to increased trading volatility. Also, stocks on the day of their IPOs are often more volatile than mature stocks, which can affect order fills for limit orders. Your limit order may not be filled if the limit price is at or above the displayed price, due to price fluctuations.

Collared Market Buy Orders

All market buy orders are placed as limit orders with a 5\% collar for equities, such as stocks and ETFs. This means that if the price of the equity moves 5\% higher than the market price at which you placed your order, it won’t execute until it comes back within the 5\% collar. Market sell orders for equities are not collared.

If you submit an order for equities during pre-market or extended-hours trading, we use the last trade price to determine the collared amount. This means that if the stock was last traded at 5\% above the collar, your order won’t be executed until the stock falls back within the collar. Your order will be canceled at market close if the order goes unfilled.

Tip: If your buying power is within 5\% of the total cost of your market order, you may not be able to place a market order. You can place a limit order instead to avoid the collar.

Note: All market orders for equities, if filled, receive the National Best Bid and Offer (NBBO) price because our executing brokers are bound by U.S. Securities and Exchange Commission Regulation NMS.

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Let's open your Robinhood account!

Submit an application in your Robinhood app.

You’ll receive an email within one trading day either confirming your application’s been approved, or asking for a little bit more information.

If we request a document to verify your identity, we’ll include instructions for uploading your documents securely. Please gives us five to seven days to review the materials and open your account.

Note: If you choose to queue a bank deposit before your application is approved, we’ll wait until your account is officially opened before initiating the deposit from your bank account into your Robinhood account.

Personal Information

Robinhood requests personal information, including financial and tax identification information, in order to comply with U.S. government laws and FINRA rules. We’ll request personal information from both new customers and long-standing customers. Robinhood complies with an SEC customer identification rule of the USA Patriot Act of 2001. This rule requires Robinhood to put procedures in place to verify the identity of any person seeking to open an account and to maintain records of their information. Robinhood must also determine whether a customer appears on any lists of terrorist organizations provided to broker-dealers by any government agency.We take the security of all data well collect very seriously. We don’t intend to use this data for anything other than the fulfillment of our regulatory requirements. Check out our data protection policies for more information.

With Robinhood you can make your money work for you. We offer a variety of assets that you can invest in, from stocks to cryptocurrencies.

You can invest in over 5,000 stocks on Robinhood Financial, including most U.S. equities and exchange-traded funds (ETFs) listed on U.S. exchanges. We’re also excited to offer options trading, cryptocurrency trading, and over 250 global stocks not listed on American exchanges.

Robinhood Financial currently supports the following assets:

U.S. Exchange-Listed Stocks and ETFs

Options Contracts for U.S. Exchange-Listed Stocks and ETFs

Cryptocurrencies, including Bitcoin and Ethereum

ADRs for over 250 Globally-Listed Companies

Robinhood Financial currently doesn’t support the following assets:

Foreign-Domiciled stocks

Select OTC Equities

Preferred Stocks

Tracking Stocks

Mutual Funds

Bonds and Fixed-Income Trading

Foreign Exchanges

Note: Though we don’t currently support stocks that trade on foreign exchanges, we do support certain American Depository Receipts (ADRs) and some stocks that trade on Canadian and Israeli exchanges.

Depending on where you live, you may also be eligible to trade certain cryptocurrencies through Robinhood Crypto. Keep in mind, Robinhood Crypto is not a member of the Financial Industry Regulatory Authority (FINRA) or the Securities Investor Protection Corporation (SIPC). Cryptocurrencies are not stocks and cryptocurrency investments are not protected by SIPC.