Discretionary Account

This Issue in United States

Concept of Discretionary Account in Futures Trading

In this context of financial law, the following is a definition of Discretionary Account: An arrangement by which the holder of an account gives written power of attorney to someone else, often a commodity trading advisor, to buy and sell without prior approval of the holder; often referred to as a ‘managed account or controlled account. DRT (‘Disregard Tape’) or Not-Held Order: Absent any restrictions, a DRT (Not-Held Order) means any order giving the floor broker complete discretion over price and time in execution of an order, including discretion to execute all, some, or none of this order.