How to Get Your Money Out of the Stock Market | Angel One (2024)

You can withdraw the money you have invested in stock markets anytime as no rules are preventing you from it. However, there are fee, commissions and costs that you have to consider. When stock markets fall, investors feel comfortable withdrawing money and holding cash. While cash gives you a sense of security in the short term, it may not be wise to do so in the long run. It is said, “When the going gets tough, the tough get going.” So when the markets fall, instead of thinking of how to get your money out of the stock market, restructure your short term equity plans to meet your long-term goals.

How to get money out of the stock market?

You can cash out of your stocks in four steps:

Order to sellshares– You need to log on to your brokerage account and choose the stock holding that you would like to sell. Place an order to sell the shares. The brokerage will raise a unique order number for the order placed.

Verify the stocks you trade– Weigh all factors before closing a stock. Check the price trend, news headlines, company announcements and other events that may influence the stock price.

Execute the order –Check the order book for pending orders and the ones already executed. Use the unique order number to track your order. If it has been executed, then it will be moved to the trade book. The trade book tells you the amount with which the stock was purchased and the average.

Reconcile your order –Once the trade has been executed, reconcile the trade summary with the contract note. Check your trade account to see your cash balance. Keep tab of the profit and loss that you make through the stock sale for tax purposes.

If you want to transfer your cash from the trading account to the bank account, make sure the two are linked.

Should you cash out of the stock market?

When the stock market falls, and your funds give you negative returns, it is only a paper loss as you only feel like having lost money, but actually, you have not. However, the moment you convert your stocks to cash, you turn your paper loss into an actual one. Investors know that the markets will rise and fall and cashing out will not give you the chance to benefit from market rebounds. A market turnaround can give you the scope of a break-even if not the opportunity to profit. If you cash out, then there is no hope for recovery.

Inflation also has a devastating effect on cash. It erodes the value of money and reduces its purchasing power. Inflation can also hurt your equity returns. But you can adjust your holdings to more growth-oriented stocks, while you can do nothing with cash.

Holding cash makes you lose out on opportunity cost. Opportunity cost is the cost incurred for not choosing the best alternative. The potential of money against the stock market is negative in the long run as inflation will erode the purchasing power of cash. Hence stock markets are a better option.

When should you sell?

When the market tanks, you tend to sell your stocks at a price lower than your purchasing price. This is a direct contrast to good investing strategy. Selling shares requires you to time the market, and if you fail, you are likely to make huge losses.


Market crashes are nerve-wracking for even seasoned investors. But equity investing should be a long term outlook. Market conditions will change, and you should stay invested to reap the benefits of a rising trend. You can revisit your portfolio and make desired changes to get the best out of the stock market.

How to Get Your Money Out of the Stock Market | Angel One (2024)


How to Get Your Money Out of the Stock Market | Angel One? ›

Withdrawal of Funds from Your Angel One Account

How can I withdraw my money from Angel One? ›

Log into your trading account, which is connected to your Demat account. Go to the section that says “funds” or “accounts” and click on it. You will be given two choices: to add funds or to withdraw funds. Click 'withdraw funds' to start transferring money from your Demat account to your bank account.

How do I get my money back from Angel One? ›

Steps to withdraw money from Angel One

Click on the 'Funds' link. Click on the 'Withdrawal' tab on the top right. Check Releasable Amount*. Click the submit button and confirm the request.

How do you withdraw money from the stock market? ›

To initiate a withdrawal from your trading account, ensure an ample free balance, and proceed by placing a withdrawal request through your trading platform or by contacting your broker's customer care. Provide the necessary details, including the withdrawal amount and bank information.

How do I cash out my stocks? ›

Stocks can be cashed out by selling them through a broker on a stock exchange. Selling stocks can provide cash for major expenses or to reinvest in other assets.

Why can't I withdraw money from Angel One? ›

Your withdrawal request can get rejected for the following reasons: You have entered a new trade. Margin requirement has changed. Inadequate balance in your account.

Should I take my money out of the stock market? ›

Unlike the rapidly dwindling balance in your brokerage account, cash will still be in your pocket or in your bank account in the morning. However, while moving to cash might feel good mentally and help you avoid short-term stock market volatility, it is unlikely to be a wise move over the long term.

How long does it take to cash out stocks? ›

In fact, it takes two trading days for equity trades to settle. This means if you sold a stock on Monday, you wouldn't receive the cash until Wednesday.

Do angel investors get their money back? ›

An entrepreneur may seek an angel investor over more conventional financing. The terms tend to be more favorable and, in fact, the angel investor doesn't expect to get the money back unless the idea succeeds. They often seek an equity stake and a seat on the board.

What happens if you sell a stock but don't withdraw money? ›

Even if you don't take the money out, you'll still owe taxes when you sell a stock for more than what you originally paid for it. When tax time rolls around, you'll need to report those capital gains on your tax return.

How much tax do you pay when you cash out stocks? ›

Capital Gains Tax
Long-Term Capital Gains Tax RateSingle Filers (Taxable Income)Married Filing Separately
0%Up to $44,625Up to $44,625
20%Over $492,300Over $276,900

Is there a penalty for withdrawing from a brokerage account? ›

A brokerage account is an investment account from which you can purchase investments such as stocks, bonds and mutual funds. You can add money to a brokerage account similar to the way you deposit funds into a bank account. Brokerage accounts have no contribution limits or early withdrawal penalties.

How do I cash out stock without paying taxes? ›

9 Ways to Avoid Capital Gains Taxes on Stocks
  1. Invest for the Long Term. ...
  2. Contribute to Your Retirement Accounts. ...
  3. Pick Your Cost Basis. ...
  4. Lower Your Tax Bracket. ...
  5. Harvest Losses to Offset Gains. ...
  6. Move to a Tax-Friendly State. ...
  7. Donate Stock to Charity. ...
  8. Invest in an Opportunity Zone.
Mar 6, 2024

Which banks are supported by Angel One? ›

Transferring funds via payment gateway

Large banks like ICICI Bank, HDFC Bank, Axis Bank, SBI and Citibank all offer payment gateways.

Can I transfer money from a trading account to a bank account? ›

Funds cannot be transferred from your Demat account to your bank account directly. All transfers to your bank account can be made using the trading account, which acts as an interface between your Demat account and bank. 2. Remember that only the amount earned upon the sale of securities can be encashed.

What is the withdrawable amount? ›

What does Withdrawable Amount mean: Withdrawable Cash: The cash amount that you can withdraw from your account.

Can I withdraw my SIP amount anytime? ›

Yes, you can exit your SIP anytime. However, you may be subject to exit loads and capital gains tax, if applicable. The specific charges and tax implications will depend on the holding period of your investment and the type of mutual fund scheme.

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