What Is an All or None (AON) Order? Definition and Example Explained
Learn what an all or none (AON) order is and how it works in stock trading to avoid partial fills and ensure full order execution.
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An all or none (AON) order is a type of stock market order where the investor instructs the broker to either fill the entire order quantity or none at all. This means if the specified number of shares isn't available at the desired price or better, the order will not be executed. It's typically used for large volume trades to avoid partial fills, ensuring the investor receives a consistent price for all shares.
FAQs & Answers
- What does an all or none order mean in stock trading? An all or none order requires that the entire quantity of shares be bought or sold at the specified price or better, with no partial fulfillment.
- When should I use an all or none order? An all or none order is best used for large trades where the investor wants to avoid receiving partial fills and ensure a uniform price for all shares.
- How does an all or none order differ from a market order? Unlike a market order which executes immediately at the current price possibly in parts, an all or none order only executes if the whole order can be filled at the desired price.