All or None Order (AON) Key Points
- All or None Order (AON) is a type of order used in trading, including cryptocurrency trading.
- An AON order must be executed entirely or not at all.
- This type of order is typically used for large volume trades, where partial fulfillment may negatively impact the investor’s strategy.
- AON orders remain active until they are completely filled or cancelled by the trader.
- While AON orders eliminate the risk of partial fills, they may be harder to fill completely due to their all-or-nothing nature.
All or None Order (AON) Definition
An All or None Order (AON) is a directive used in trading, including in the cryptocurrency market, where the order must be executed in its entirety or not at all. In other words, a trader specifies that they wish to buy or sell a certain amount of a security, and if the full quantity is not available, the order will not be executed.
What is All or None Order (AON)?
An All or None Order is a type of trading instruction commonly used in stock, forex, and cryptocurrency markets.
It specifies that the order must be fully executed or not executed at all.
This type of order is particularly useful when dealing with large volumes, where partial fulfillment could disrupt an investor’s trading strategy.
Who Uses All or None Order (AON)?
AON orders are primarily used by investors and traders who deal with large volumes of securities or cryptocurrencies.
These individuals typically have specific investment strategies and prefer the assurance that their orders will be fully executed or not at all.
Institutional investors, high-net-worth individuals, and even retail traders can use AON orders.
When is All or None Order (AON) Used?
AON orders are used when a trader wants to ensure that their order is fully executed.
This is typically when dealing with large volumes of a security or cryptocurrency, where partial fulfillment could disrupt the trader’s investment strategy.
An AON order remains in effect until it is completely filled or until the trader decides to cancel it.
Where is All or None Order (AON) Used?
All or None Orders (AON) are used across various trading platforms, including stock, forex, and cryptocurrency markets.
As long as the platform supports this type of order, traders can utilize it to ensure full execution of their trades.
Why is All or None Order (AON) Used?
AON orders are used to ensure that a trade is fully executed, eliminating the risk of partial fills.
This is especially important for large volume trades, where partial execution could lead to unwanted exposure or disrupt a carefully planned trading strategy.
However, it’s worth noting that due to their all-or-nothing nature, AON orders may be harder to fill completely.
How Does All or None Order (AON) Work?
When a trader places an AON order, they are instructing the broker to execute the order in its entirety or not at all.
If the full amount of the security or cryptocurrency is not available at the desired price, the order will not be executed.
The order remains active until it can be completely filled or until the trader cancels it.
This ensures the trader gets the full amount they want, or none at all, avoiding the risk of partial fills.
