How Long Does It Take to Sell Shares on Trading 212?

Selling shares on Trading 212 might seem like a simple task, but the process has its nuances. The time it takes to sell shares depends on several factors including market liquidity, trading hours, and the type of order placed. You might think that all it takes is a quick tap on your screen to cash out, but understanding how to navigate these factors can save you time and money.

Let’s start with an important question: how quickly can you get your money? This is a key concern for most investors. While placing a market order during regular trading hours can lead to an almost instant sale, it's not always that straightforward. If you place a market order for a highly liquid stock, such as a major tech company or a blue-chip stock, chances are your order will be executed almost immediately. But what if you're dealing with a less liquid stock?

The type of stock and liquidity of the market matters. If you're selling shares of a smaller, less frequently traded company, the sale might not happen as quickly. In fact, if there aren’t enough buyers at your asking price, it might take minutes, hours, or even longer for the sale to go through.

Now, let’s dig into order types. The type of order you place on Trading 212 will significantly influence how fast your shares are sold. The three most common order types are:

1. Market Orders: These are the fastest. When you place a market order, you're asking to sell your shares at the best available price. If the stock is liquid, this will likely result in an instant sale.

2. Limit Orders: With a limit order, you're setting a specific price at which you're willing to sell. The upside is that you might get a better price, but the downside is that it could take longer for the order to be executed. If the market doesn’t hit your price, your order may not go through at all.

3. Stop Orders: These are a bit more complex. A stop order becomes a market order once a stock reaches a certain price. This can be useful if you want to protect yourself from losses, but it may add a delay in the time it takes to sell your shares, depending on market conditions.

Trading Hours and Timing

Another factor that can affect how long it takes to sell shares on Trading 212 is when you place your order. Trading on the major exchanges generally happens between 9:30 AM and 4:00 PM Eastern Time (ET) from Monday to Friday. If you try to sell outside of these hours, such as during pre-market or after-hours trading, the time it takes to sell your shares might be longer due to lower liquidity. The markets just don’t move as quickly outside of regular trading hours.

If you're selling shares during peak trading times, such as at market open or close, you might experience some delays due to the high volume of trades. However, these times can also work to your advantage if you're trading a stock that sees a lot of action at the open or close of the day.

How Do You Know if the Sale is Successful?

One of the key features of Trading 212 is that you can see the status of your order in real-time. Once you place your sell order, Trading 212 will show you whether it’s pending, partially filled, or completely filled. If your order hasn’t been filled right away, you can cancel it and place a new order or wait for it to go through.

In some cases, especially with limit orders, you might find that only part of your order is filled right away. For example, if you’re trying to sell 1,000 shares but only 500 buyers meet your price, you might have to wait for the rest of the order to be completed.

What About Settling the Funds?

It’s important to know that just because your shares have sold, it doesn’t mean you’ll have immediate access to your money. Settlement time is an essential part of the process. Trading 212, like most other brokers, operates under the T+2 settlement rule. This means that once your shares are sold, it typically takes two business days for the funds to become available in your account. So, while the sale of your shares might be instant, you’ll have to wait a bit before you can withdraw or reinvest that money.

Market Volatility and Delays

Market volatility can also affect the speed at which your shares are sold. During periods of high volatility, such as around major economic announcements or during times of crisis, markets can move extremely fast. This can work in your favor if you're trying to sell a stock that’s skyrocketing, but it can also lead to delays if the market becomes overwhelmed with orders. Trading 212 may experience delays in processing during these times, particularly with limit and stop orders.

Example Case: Selling a Stock During High Volatility

Let’s consider a real-world example. Imagine you hold shares in a volatile stock that has just released bad earnings news. Everyone is rushing to sell. If you place a market order during this time, the chances of the stock price fluctuating between the time you place your order and the time it gets executed are high. This could mean you end up selling your shares for less than you expected. In cases like this, the time it takes to sell could be impacted by the sheer volume of orders being processed.

In contrast, if you hold shares in a more stable stock, like a blue-chip company, the sale will likely go through much faster even during periods of market stress.

Advanced Tools to Speed Up Your Sale

Trading 212 offers several advanced tools that can help you manage the timing of your sale:

• Price Alerts: You can set up alerts to notify you when a stock hits a specific price. This can help you time your sale more effectively, especially if you're planning to place a limit order.

• Auto-Sell Functionality: This feature allows you to automatically sell your shares once a certain price is reached. It’s a useful tool if you don’t want to monitor the market constantly but still want to secure a specific price for your shares.

Final Thoughts

So, how long does it take to sell shares on Trading 212? It depends on several factors: the type of stock you're selling, the type of order you place, market liquidity, and when you place the order. While some shares can be sold almost instantly with a market order during regular trading hours, others might take longer, especially if you're dealing with less liquid stocks or placing a limit order. Ultimately, understanding these factors will help you make more informed decisions and ensure a smooth selling process.

In conclusion, selling shares on Trading 212 can be a quick and seamless experience, but only if you understand the intricacies of market liquidity, trading hours, and order types. Make sure you're aware of these factors before placing your next sell order.

Key Takeaways:

• Market Orders: Fastest way to sell but may not always get the best price.
• Limit Orders: Give you more control over the price but can take longer.
• Settlement Time: You won’t have access to your funds for at least two business days after the sale.
• Market Volatility: Can speed up or delay your order depending on conditions.

Being aware of these elements ensures that when the time comes to sell, you're equipped with the knowledge to navigate the process efficiently and strategically.