# Series 7 Exam Prep 10, Discretionary Accounts and Trading Authority

Page: https://stenobird.com/podcast/open-exam-prep-7140559/series-7-exam-prep-10-discretionary-accounts-and-trading-authority
Text version: https://stenobird.com/podcast/open-exam-prep-7140559/series-7-exam-prep-10-discretionary-accounts-and-trading-authority.md
Podcast: [Open Exam Prep](https://stenobird.com/podcast/open-exam-prep-7140559)
Published: 2026-06-17T01:01:53+00:00
Episode link: https://open-exam-prep.captivate.fm/episode/series-7-exam-prep-10-discretionary-accounts-and-trading-authority
Audio file: https://episodes.captivate.fm/episode/3a9fb5fd-f6de-4960-833e-6629dc126a59.mp3
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Duration seconds: 194

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The three elements that define a discretionary trade: Asset, Action, and Amount (the three 'A's'). - The critical difference between full discretion, which requires written authorization, and time and price discretion, which can be granted verbally for one day. - The two essential requirements for establishing a discretionary account: the client's prior written power of attorney and a principal's written acceptance. - The supervisory responsibilities of a principal, including the frequent review of discretionary account activity to prevent churning. - Common Series 7 exam traps, such as confusing a client's verbal instructions with the legally required written authorization for discretionary trading. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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## Transcript

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