Sell Stop Order is an order placed beneath the current market for a security to protect a profit, to guard against a loss or to establish a short position.
Applying "Sell Stop Order" to Securities Exams:
Sell Stop Orders are mostly used to protect a profit or to guard against a loss on long stock position. Once the stock trade at or below the stop price the order will be elected and the stock will be sold. A sell stop order may also be used to enter or to establish a short position on weakness if a stock breaks important support.