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General TradingD

Discretionary Account

A discretionary account is a trading account in which the client authorizes a broker, financial advisor, or money manager to make buy and sell decisions on their behalf without requiring prior approval for each trade. The manager has discretion over trade selection, timing, and position sizing within agreed-upon guidelines.

Example

The retiree opened a discretionary account with a wealth management firm, allowing the portfolio manager to execute trades without needing approval for each one.