A type of limit order that can be modified by a floor broker according to his or her own judgment, allowing him or her to buy or sell to a set point beyond the bounds of the original order. This trading modifier used along with limit and stop orders allows greater customization and flexibility.
An order placed with discretion is often beneficial to the investor because it allows brokers to take into account the momentum and mood of the trading floor and act on it as they see fit. For example, say an investor places an order for 500 shares of ABC with a limit order of $15 and a with discretion modifier. If ABC has fallen to around $15 several times during the day but it seemingly won't get to $15, the broker may use discretion and go ahead buy the shares at $15.05, which is a minimal difference to the investor.