A customer is very bearish on ABC stock. It is currently trading at $51 per share. She only wants to enter a 100 share short position if support gives out at the $50 level. Which type of order might she use?

Explanations

She wants to enter the position on weakness if support doesn't hold at $50. So, she can use a stop order to sell 100 shares at $49.90. If ABC stock trades down to $49.90, she will be short 100 shares near $49.90 (could be lower or higher).