Why can’t I reinvest the full proceeds from my stock sale?
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.
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.