Discretion


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Related to Discretion: discretion is the better part of valor, Administrative Discretion

Discretion

Freedom given to the floor broker by an investor to use his judgment regarding the execution of an order. Discretion can be limited, as in the case of a limit order that gives the floor broker some distance from the stated limit price to use his judgment in executing the order. Discretion can also be unlimited, as in the case of a market-not-held order. See also: Market Not Held Order.

Discretion

The ability to make decisions on one's own without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner. Likewise, certain investments give an investor more discretion than others. An option contract allows but does not require the holder to buy (or sell) the underlying, while a futures contract requires the exchange to take place.
References in classic literature ?
Does the British Constitution restrain the parliamentary discretion to one year?
Had the argument from the British example been truly stated, it would have stood thus: The term for which supplies may be appropriated to the army establishment, though unlimited by the British Constitution, has nevertheless, in practice, been limited by parliamentary discretion to a single year.
Even this soon ceased, as if by a common consent, when the curiosity and impatience of the sheriff getting the complete ascendency over discretion, he rushed up the bank, and in a moment stood on the little piece of cleared ground in front of the spot where Natty had so long lived, To his amazement, in place of the hut he saw only its smouldering ruins.
Discretion - he jumped at that; and yet not, verily, at such a pitch, because it saved his nerves or his skin, but because, much more valuably, it saved the situation.
The pretext that wouldn't have been too silly or too compromising, the explanation that would have saved his dignity and kept his name, in such a case, out of the papers, was not definite to him: he was so occupied with the thought of recording his Discretion - as an effect of the vow he had just uttered to his intimate adversary - that the importance of this loomed large and something had overtaken all ironically his sense of proportion.
But surely discretion has its limits,' he added, 'after such a discovery as we have made?
I had escaped from another death-pit, dragged myself through another morass, and perilously acquired the discretion that would enable me to drink wisely for many another year to come.
This is a matter in which every thing is trusted to my discretion, and to yours.
I have seen the world, brother, and know what arguments to make use of; and if your folly had not prevented me, should have prevailed with her to form her conduct by those rules of prudence and discretion which I formerly taught her.
The tact which I find here, the discretion, the rare courage, the wonderful power of memory, the accurate observation of character, the easy grace of style, the charming outbursts of womanly feeling, have all inexpressibly increased my admiration of this sublime creature, of this magnificent Marian.
Appellate courts might affirm judgments made by trial courts without adequate review when issues on appeal turn on whether the trial court exercised its discretion properly.
In 2010, the author conducted a study that examined the effects of municipal discretion on municipal performance.