Limited discretion

Limited Discretion
An agreement whereby a client allows their broker to make certain types of transactions without first notifying the client. For example, the broker will sell an option position that is about to expire when it is in-the-money.

Limited discretion
Permission by a client that allows a broker to make certain stock and option trades without first consulting the client about the trade.

Limited Discretionary Account
A type of account in which a client allows a broker to act on his or her behalf in buying and selling securities. In this case, the broker can make certain types of trades without prior consent from the client.

Limited discretion
Limited discretionary account
Limited liability
Limited Liability Company
Limited Liability Company - LLC
Limited Liability Partnership
Limited partnership
Limited Partnership - LP
Limited Partnerships
Limited payment policy ...

However, the client may give very limited discretion to the broker or account executive. This limited discretion is in terms of price or time. However, an order as to whether to buy or sell, quantity and exact instrument is required to be given.

Indirect Methods
The Service does not have unlimited discretion to use an indirect method. An indirect method should be used only when the facts of the individual case warrant its use. For example, when: ...

A form of business commonly used in the U.K. comparable to incorporation in the U.S.
Limited discretion ...

limited discretionary account A particular agreement in which a client has given his broker the ability to make certain types of trades without prior consent.

See also: Expense, Limit up, Listed security, Listed option, Life annuity