A sell stop order is designed to trigger a market sell if a stock falls to a specified price. It’s a risk-management tool used to limit losses or protect gains—but can introduce execution uncertainty once triggered. This video breaks it all down clearly and concisely.

You’ll learn:

• How a sell stop order is structured and when it activates

• Why investors use this order in a declining market

• Why execution is not guaranteed at the stop price

• How these orders are framed in exam questions

📘 Related Exams: SIE, Series 7, Series 9, Series 65, Series 66
🧠 Skill Level: Intermediate
📈 Topics Covered: Order types, stop order logic, downside protection, execution risk