Trading Authorization

AAA

DEFINITION of 'Trading Authorization'

The level of power entrusted to a broker or agent granting specific levels of access to a client's account. Trading authorization dictates what actions an agent may perform, such as buying or selling. This is similar to the concept of power of attorney, but only deals with the client's trading account. 

INVESTOPEDIA EXPLAINS 'Trading Authorization'

Investors may authorize an agent by filling out the required documentation. The client will likely be able to choose between granting either full or limited authorization, with the latter restricting the agent from withdrawing funds from the account. Once trading authorization has been established, an agent may purchase and sell securities on the client's behalf, make inquiries into the account and possibly withdraw or transfer funds.

RELATED TERMS
  1. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  2. Managed Account

    An investment account that is owned by an individual investor ...
  3. Limited Power Of Attorney - LPOA

    An authorization form used in the professional money management ...
  4. Limited Trading Authorization

    A level of trading authorization that gives an agent or broker the ...
  5. Full Trading Authorization

    A level of trading authorization that grants an agent or broker the ...
  6. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
Related Articles
  1. Shopping For A Financial Advisor
    Options & Futures

    Shopping For A Financial Advisor

  2. 4 Dishonest Broker Tactics And How To ...
    Personal Finance

    4 Dishonest Broker Tactics And How To ...

  3. Dispelling 5 Myths About Financial Planners
    Budgeting

    Dispelling 5 Myths About Financial Planners

  4. Choosing A Compatible Broker
    Retirement

    Choosing A Compatible Broker

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center