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. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
  2. Full-Service Broker

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

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

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

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

    A level of trading authorization that grants an agent or broker the ...
Related Articles
  1. Options & Futures

    Shopping For A Financial Advisor

  2. Personal Finance

    4 Dishonest Broker Tactics And How To ...

  3. Budgeting

    Dispelling 5 Myths About Financial Planners

  4. Retirement

    Choosing A Compatible Broker

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center