All Or None Order (AON)

What is an All Or None Order (AON)?

An All Or None Order is a conditional order used by traders on trading platforms to ensure that a buy or sell transaction is executed at a specified price for the entire quantity.

Definition of an All Or None Order

An all-or-none order functions as a type of conditional order on trading platforms, stipulating that the buy or sell order must be executed for the entire available quantity, partial execution is not permitted. The broker is notified that the order must be executed in full or not at all. The order is canceled if the number of available shares is insufficient to execute it in full. Traders use all-or-nothing orders to ensure their orders are executed in full at the specified price and to avoid partial trades in stocks with low trading volume.

How an All Or None Order works

An All Or None Order (AON) order functions as a conditional order because the trader provides instructions on the trading platform regarding how the order should be executed, which affects how long the order remains active. All-or-nothing orders that cannot be executed at the time they are placed remain valid during trading hours until they are executed or canceled. They prevent partial execution of the order, especially for assets with low trading volume.

Disadvantages of an All Or None Order

One of the biggest disadvantages of an all-or-nothing order is the difficulty in executing it and the fact that it remains open for long periods, especially in markets or for assets with low trading volume.

Related term: "conditional orders" are trading orders that are triggered to buy or sell when a specified condition is met.

Compliance disclaimer

Warning: investing in cryptocurrencies involves significant risks, and you may lose some or all of your capital. This content is for educational purposes only and is not an investment recommendation. Consult a licensed financial advisor before making any investment decisions.