Freedom given by an investor through his or her Account Executive to use judgment regarding the execution of an order. Discretion can be limited, as in the case of a limit order which gives the Floor Broker 1/8 or 1/4 point from the stated limit price to use his or her judgment in executing the order. Discretion can also be unlimited, as in the security selected, number of shares, and whether to buy or sell.
a public official's power or right to act in certain circumstances according to personal judgment and conscience. (see Judicial Discretion); e.g., discretionary power is often abused by family law judges by violating the privacy rights of spouses to make arbitrary alimony awards.
freedom to act or judge on one's own
the power of making free choices unconstrained by external agencies
When applied to public bodies, means a power conferred upon them by law to act officially in certain circumstances, according to the dictates of their own judgment uncontrolled by the judgment of others, but in accordance with the law. As applied to public officer, it means power to act in an official capacity in a manner which appears to be just and proper under the circumstances. See also Judicial Discretion.
The freedom to act on one's own judgment.
The full or partial power to make a decision or judgment.
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.125 or.25 point 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 Limit Order and Market Not Held Order.