A sell stop is a protective measure, which will automatically trigger the sale of stock once its price dips below a certain pre-determined level. A sell stop is also called a stop loss order. In more detail, a sell stop limit order means that when a stock falls to the level you have indicated as the point to sell, the stock will be sold at the EXACT price you have specified. (However, a falling stock may not always hit the exact price you have specified. It may jump down and miss the sell stop level altogether.) On the other hand, a sell stop market order means that once the stock falls to that price, the stock will sell at whatever the going market price of the stock is at the time. Also see: The glossary definition of a trailing sell stop.
