A sell stop order is entered:

A sell stop order is a type of order that is placed below the current market price and is designed to limit loss or protect profit on a security. When the market price falls to or below the specified stop price, the sell stop order is triggered and becomes a market order. This helps investors manage the risk associated with holding a security that may be declining in value.

By placing the order below the current market price, investors anticipate that if the stock begins to decline, they can exit their position automatically, rather than waiting for the price to potentially fall further. Hence, entering a sell stop order below the current market price is a strategic approach to risk management in the securities market.