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How to Sell Stock on Fidelity: A Seasoned Investor’s Guide

So, you’re ready to part ways with some of your shares on Fidelity. Excellent! Whether you’re taking profits, rebalancing your portfolio, or simply need some cash, selling stock is a fundamental part of investing. The process itself is straightforward, but understanding the nuances can help you optimize your execution and avoid common pitfalls. Here’s a comprehensive guide to selling stock on Fidelity, broken down step-by-step.

How to Sell Stock on Fidelity: The Direct Answer

Selling stock on Fidelity involves a few simple steps. First, log in to your Fidelity account through their website or mobile app. Then, navigate to your portfolio or account summary. Select the specific stock you wish to sell. Click on the “Trade” or “Sell” button associated with that stock. A trade ticket will appear where you’ll enter the number of shares you want to sell and choose your order type. Finally, review your order carefully and submit it. Fidelity will then execute your order based on the market conditions and your chosen order type.

Navigating the Fidelity Platform for Stock Sales

While the overall process is concise, let’s dive deeper into each step to ensure you’re equipped with the knowledge to execute your trades flawlessly.

Step 1: Logging In and Accessing Your Portfolio

This seems obvious, but double-checking your credentials is always a good idea. Ensure you’re using the correct username and password, and that you have two-factor authentication enabled for enhanced security. Once logged in, you’ll typically land on your account summary page. From here, look for a tab or link labeled “Accounts & Trade,” “Portfolio,” or similar. Click on it to access a detailed view of your holdings.

Step 2: Selecting the Stock to Sell

Your portfolio will display a list of all the stocks and other assets you own. Locate the specific stock you want to sell. Fidelity’s interface usually provides key information such as the current price, quantity of shares you own, and any unrealized gains or losses. Double-check that this is indeed the stock you intend to sell. Misclicks happen!

Step 3: Initiating the Trade

Once you’ve identified the stock, look for a “Trade” or “Sell” button next to it. This action will open a “trade ticket,” which is essentially an order form where you specify the details of your sale.

Step 4: Filling Out the Trade Ticket

This is where the real decisions come in.

Action: Ensure that “Sell” is selected.
Quantity: Enter the number of shares you want to sell. You can choose to sell all your shares by selecting a “Sell All” option, if available.
Order Type: This is crucial and impacts how your order is executed. We’ll delve into order types in more detail below, but the most common are:
- Market Order: This instructs Fidelity to sell your shares at the best available price immediately. It’s the fastest way to sell, but you have less control over the exact price you receive.
- Limit Order: This allows you to specify the minimum price at which you’re willing to sell your shares. Your order will only be executed if the market reaches that price or higher. This gives you more control but might result in your order not being filled if the market doesn’t reach your desired price.
- Stop-Loss Order: Used to limit potential losses. You specify a “stop price.” If the stock price falls to that level, your order is triggered as a market order to sell.
- Stop-Limit Order: Similar to a stop-loss, but once the “stop price” is hit, it becomes a limit order at a specified “limit price.” This gives you more control but also increases the risk of your order not being filled.
Time in Force: This determines how long your order will remain active. Common options include:
- Day: The order is only active for the current trading day. If it’s not filled by the end of the day, it’s canceled.
- Good ‘Til Cancelled (GTC): The order remains active until it’s either filled or you manually cancel it. Be mindful of GTC orders, as market conditions can change significantly over time.
Account: Confirm that the trade is being executed from the correct account (e.g., taxable brokerage account, IRA).

Step 5: Reviewing and Submitting Your Order

Before clicking that final “Submit” button, carefully review all the details of your order. Double-check the stock symbol, quantity, order type, and time in force. Fidelity will typically provide an estimated commission and the potential proceeds from the sale. Once you’re satisfied, click “Submit” to send your order to the market.

Step 6: Order Confirmation and Monitoring

After submitting your order, Fidelity will display a confirmation message. You can also track the status of your order in the “Orders” or “Activity” section of your account. If you used a market order, it should be filled almost immediately during market hours. Limit orders may take longer or may not be filled at all if the market doesn’t reach your specified price.

Order Types: A Deeper Dive

Choosing the right order type is crucial for achieving your desired outcome.

Market Order: The simplest and fastest way to sell. Use it when you need to sell quickly and are less concerned about getting the absolute best price. However, be aware that in volatile markets, the price you receive may differ from the price you saw when you placed the order (this is called slippage).
Limit Order: Gives you more control over the price you receive. Use it when you have a specific price in mind and are willing to wait for the market to reach that level. Remember that there’s no guarantee your order will be filled.
Stop-Loss Order: Designed to protect your profits or limit losses. Use it when you want to automatically sell your shares if the price falls below a certain level. Be cautious of “fake outs,” where the price briefly dips below your stop price, triggering your order and then rebounding.
Stop-Limit Order: Offers a combination of protection and price control. Use it when you want to limit losses but also want to ensure you don’t sell at a price significantly lower than your stop price. This type of order requires careful consideration and may not be suitable for all situations.

FAQs: Selling Stock on Fidelity – The Expert Answers

Here are some frequently asked questions, answered with the experience only seasoned investors can provide.

1. What are the fees associated with selling stock on Fidelity?

Fidelity is generally known for its low-cost trading. They don’t charge commissions for online trades of stocks, ETFs, and options. However, regulatory fees may apply, though these are typically very small (fractions of a penny per share). Always check Fidelity’s fee schedule for the most up-to-date information.

2. How long does it take for the funds to become available after selling stock?

Generally, it takes T+2 business days for the proceeds from your stock sale to settle. This means if you sell on Monday, the funds will typically be available on Wednesday. This settlement period is mandated by regulatory bodies.

3. What are the tax implications of selling stock on Fidelity?

Selling stock can trigger capital gains taxes. If you hold the stock for more than a year, it’s considered a long-term capital gain, which is typically taxed at a lower rate than short-term capital gains (held for a year or less). Keep accurate records of your purchase price (cost basis) and sale price to accurately calculate your gains or losses. Consult a tax professional for personalized advice.

4. Can I sell stock on Fidelity after hours?

Yes, Fidelity offers extended hours trading, allowing you to place orders outside of regular market hours (9:30 AM to 4:00 PM ET). However, liquidity may be lower during extended hours, which can lead to wider spreads and potential price slippage. Be cautious when trading after hours.

5. How do I cancel a sell order on Fidelity?

If your order hasn’t been filled yet, you can usually cancel it through the “Orders” or “Activity” section of your account. Locate the pending order and click the “Cancel” button. Keep in mind that if your order is already being processed, cancellation may not be possible.

6. What’s the difference between selling stock short and selling stock I own?

Selling stock short involves borrowing shares and selling them, hoping the price will decline so you can buy them back at a lower price and return them to the lender, profiting from the difference. This is a more advanced strategy with significant risk. Selling stock you own is simply liquidating your existing holdings.

7. Can I sell fractional shares on Fidelity?

Yes, Fidelity allows you to trade fractional shares of stocks and ETFs. This is particularly useful for investing in high-priced stocks.

8. How do I sell stock in a retirement account (IRA, 401(k)) on Fidelity?

The process is similar to selling in a taxable account. However, the tax implications are different. In a traditional IRA or 401(k), withdrawals are taxed as ordinary income in retirement. In a Roth IRA or 401(k), qualified withdrawals are tax-free.

9. What is a “wash sale” and how does it affect my taxes when selling stock on Fidelity?

A wash sale occurs when you sell a stock at a loss and then repurchase the same (or substantially identical) stock within 30 days before or after the sale. The IRS disallows the loss in this case, and it’s added to the cost basis of the new shares. Be aware of wash sale rules when selling stocks at a loss, especially around tax season.

10. How can I get help if I encounter problems selling stock on Fidelity?

Fidelity offers excellent customer support through phone, email, and online chat. Don’t hesitate to reach out to them if you need assistance.

11. What are the risks associated with selling stock?

The primary risk is that the market price may move against you between the time you place your order and the time it’s executed. This is especially true for market orders in volatile markets.

12. Should I use a market order or a limit order when selling stock?

The choice depends on your priorities. If you need to sell quickly and are less concerned about the exact price, a market order is suitable. If you have a specific price in mind and are willing to wait, a limit order is a better choice. Consider your risk tolerance and the specific circumstances of the trade.

By understanding these nuances, you can confidently navigate the process of selling stock on Fidelity and make informed decisions that align with your investment goals. Happy trading!