Discretion


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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 periodicals archive ?
Per the "level off" part of the pilot's discretion clearance, you may stop your climb right there before things get worse.
The simplest definition can be found in the Form ADV Glossary, which states that an advisor has investment discretion if it has the authority to:
However, evidence concerning skill discretion is less consistent, especially with regard to the buffering hypothesis.
The Dan Wesson Discretion 1911 (MSRP: $2,142) has a match-grade 5.75-inch barrel that, as I said before, is threaded for a suppressor.
Notwithstanding the predominant (and often accurate) view that on-the-ground enforcers resist innovation, many frontline immigration officers have demonstrated willingness, and an ability, to put their discretion toward creative ends.
He also ruled that Buckler's claim under the FTCA was barred by the discretionary-function exception, which blocks suits against the government for harm caused by a government employee's actions if they are subject to discretion "grounded in social, economic and political policy."
It argued that the prime minister is vested with the discretion to appoint special assistants, who may be entrusted with performing the functions of a minister of state, but the premier's discretion to appoint special assistants is subject to the general scheme of the Constitution, including Articles 2A, 4, 5, 62 and 63 of the Constitution.
Senator Francis "Chiz" Escudero on Monday expressed belief that the best way to curb corruption in the Bureau of Customs (BOC) is to minimize discretion among its employees.
The Tribunal said that it had concluded that former Commissioner of Mines Moses Masibo purported to exercise a discretion he did not possess.
However, the suspension of work for non-teaching personnel will be under the discretion of their superiors.
I broke the law, but the officer exercised prosecutorial discretion' !-- -- Recently, I had to cross a boulevard.
With the amendment to the Act, judges are now given the discretion to sentence convicted drug traffickers with a life sentence alternative with no less than 15 strokes of the whip.

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