Finance · Trading Accounts

What is the defining feature of a discretionary account in securities or commodities trading?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The funds in the account are completely locked and cannot be withdrawn for a fixed period.
2The account can only be opened by institutional investors with assets over ten million dollars.
3The customer gives written authority to a broker or manager to buy and sell assets without prior approval for each trade.✓
4The account holder must manually approve every individual transaction before execution.

Correct answer

The customer gives written authority to a broker or manager to buy and sell assets without prior approval for each trade.

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