Robinhood is a popular investing app that allows users to trade stocks, options, ETFs, and cryptocurrencies commission-free. It has a user-friendly interface that makes it easy for beginners to get started with investing. However, sometimes users may need to cancel a pending stock order they have placed on Robinhood before it executes. Here is a step-by-step guide on how to do that:
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When Can You Cancel a Pending Order?
- You can only cancel pending orders on Robinhood. Once an order has been executed, it cannot be reversed.
- Pending orders can be canceled at any time until they are executed.
- However, there are certain situations where pending orders cannot be canceled:
- During a trading halt – Orders placed during a trading halt cannot be canceled and will execute once the halt is lifted.
- Between 9:20 AM and 9:30 AM ET for fractional orders – Fractional orders cannot be canceled during this time due to proximity to market open.
- For stocks no longer supported on Robinhood – Robinhood will automatically cancel any pending orders for stocks it no longer supports.
Step-by-Step Process to Cancel a Pending Order
Follow these simple steps to cancel a pending stock order on the Robinhood mobile app:
- Open the Robinhood app and tap on the “Investing” tab at the bottom.
- Tap on the pending order you want to cancel. This will open the order details screen.
- Scroll down and tap on “Cancel Order” under the “Pending Orders” section.
- A popup will appear asking you to confirm the cancellation. Tap “Cancel Order” again.
The pending order will now be canceled and removed from your account. You will also receive a notification confirming the cancellation.
Note: If you do not see the “Cancel Order” option, it means your order is no longer pending and has been executed. Pending orders cannot be canceled once they have been fulfilled.
Tips for Canceling Orders Successfully
Here are some useful tips to keep in mind when canceling pending orders on Robinhood:
- Set up price alerts for your stocks so you are notified if the price starts moving against you. This allows you to cancel your orders in time.
- For fractional orders, cancel any pending orders before 9:20 AM ET to avoid automatic execution at market open.
- If you want to cancel orders placed outside regular trading hours, do so before 7:30 AM ET.
- Always double check if your cancellation was successful. Sometimes orders may still execute after an attempt to cancel.
- Use limit orders instead of market orders when possible, as limit orders are easier to cancel.
- Avoid placing orders right before major scheduled market events like economic data releases.
Why Pending Orders May Not Cancel
In some cases, you may not be able to cancel your pending stock orders on Robinhood successfully. Here are some reasons why:
- Sudden change in stock price – If the stock price changes drastically, your order may execute before you can cancel it. Always use price alerts.
- High volatility – When a stock is experiencing high volatility, pending orders may execute very quickly and be impossible to cancel.
- Trading halts – As mentioned before, orders cannot be canceled during trading halts and must wait for trading to resume.
- Technical issues – Network connectivity issues or app crashes can sometimes lead to orders not canceling properly.
- Fractional order restrictions – The time window where fractional orders cannot be canceled is longer on Robinhood compared to regular orders.
In these situations, there is unfortunately no way to cancel the pending stock order. The best solution is being vigilant about the price movements of stocks you are trading and canceling orders proactively.
Conclusion
Canceling pending stock orders on Robinhood is easy and straightforward in most cases. Just tap the pending order and then tap “Cancel Order”. However, due to market volatility or fractional order rules, some pending orders cannot be canceled. Use price alerts wisely and cancel proactively before major market-moving events. Limit orders can also help increase the likelihood of a successful cancellation.
