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Defiant Stance (Order Card) says:Yes it can be used that way (why not? You could even use it without taking any damage), but it seems like a very suboptimal move to me for the following reasons:
"Prevent 20 damage to this creature from 1 source - Gain 1 Morale".
My wife used this card with hazardous terrain.
She moved with intend through hazardous terrain, in order to take the damage and used this card to take the morale.
Can this card be used like this??
Hazardous terrain deals 10 damage, so you are only using half the damage prevention potential of the card.
Since it's an immediate action it will tap the creature.
You can not keep moving after the creature becomes tapped so you are stuck in hazardous terrain and will take 10 more damage at the end of the turn.
Barring Minor actions you cannot attack with that creature this turn.
So instead of "prevent 20 damage, gain 1 morale" the card this way becomes "take 10 damage, gain 1 morale, don't attack this turn". Pretty bad trade of just to make sure the card gets played right now IMO.
As I mentioned above you can just play the card without moving into the hazardous terrain, that at least prevents taking 10 damage.