With Discretion

If you stuck your hand in the cookie jar when someone was in the next room, this is an example of not acting with discretion. Been there, done that. We know you have.

In finance-speak, this usually applies to the situation where a stockbroker "on the floor," as they say, executes a special order type based on their best judgment at the time. A with discretion order is a flexible order type, also known as a “not-held order,” which gives the broker some flexibility in getting the best price at the best time. Unlike a market order, a with discretion order doesn’t execute at the same time you order the trade.

With discretion orders are good during periods of volatility where things are going up and down by leaps and bounds. They’re also good for brokers that are good at seeing patterns, or for those who don’t want to commit to a stock at a price more than x, i.e. an upper limit. If the broker’s head is in the clouds, however, setting a with discretion order with an unrealistic upper limit will mean the trade won’t execute.

Sometimes, you just have to go for it. The cookies, we mean.