Settlement and buying power
The settlement period 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.
Stocks take 2 trading days to settle and options take 1 trading day to settle. In a margin account, you can instantly trade with funds from unsettled stock and option sales.
Cash accounts can’t trade with unsettled funds. You’ll need to wait 2 trading days to trade with funds from equity sales, and 1 trading day to trade with funds from options sales.
With Instant Deposits, you may get up to $1,000 instantly after you initiate a bank deposit into your Robinhood account. Although you may have access to these funds right away, the transfer from your bank into your Robinhood account may take up to 5 business days.
All proceeds from crypto sales are available immediately. Check out Crypto buying power for more details.
Cash brokerage accounts don’t have access to instant settlement, and banking holidays can affect settlement times.
Buying power is the amount of money you can use to purchase stocks, options, or crypto. Trading in stocks and options is done through your brokerage account with Robinhood Financial, while crypto trading is done through a separate account with Robinhood Crypto. You can see all of your buying power in Account.
All investments involve risk and loss of principal is possible.
Securities trading is offered through Robinhood Financial LLC (member SIPC), which is a registered broker-dealer. Robinhood Securities, LLC (member SIPC) is a registered broker-dealer and provides clearing services. Robinhood Crypto, LLC provides crypto currency trading. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).
Margin investing involves the risk of greater investment losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. For more information, review our Margin Disclosure Statement.
Options trading entails significant risk and is not appropriate for all investors. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Customers should consider their investment objectives and risks carefully before investing in options.