Advanced English Dialogue for Business – Limited trading authorization

Listen to a Business English Dialogue About Limited trading authorization

Katherine: Hi George, have you heard about limited trading authorization in finance?

George: No, I haven’t. What is it?

Katherine: Limited trading authorization is when you give someone else permission to make trades on your behalf, but with restrictions on what they can do, like only buying or selling specific securities.

George: Oh, I see. What are some reasons someone might use limited trading authorization?

Katherine: Limited trading authorization can be useful if you want someone to manage certain aspects of your investment portfolio but still want to maintain control over specific decisions.

George: That makes sense. Are there any risks associated with granting limited trading authorization?

Katherine: Yes, there are risks, such as the possibility of the authorized person making trades that don’t align with your investment goals or risking your funds without your consent.

George: I understand. How do you set up limited trading authorization?

Katherine: You typically fill out a form provided by your brokerage or financial institution, specifying the limitations and duration of the authorization, and then submit it for approval.

George: Got it. Can you revoke limited trading authorization once it’s been granted?

Katherine: Yes, you can usually revoke or modify the authorization at any time by contacting your brokerage or financial institution and submitting a written request.

George: Thanks for explaining, Katherine. Limited trading authorization seems like a way to delegate some investment decisions while still maintaining control.

Katherine: Absolutely, George. It can be a helpful tool for managing your investments more efficiently while minimizing the risk of unauthorized trades.