All or none (AON),
Definition of All or none (AON):
All or none (AON) is a directive used on a buy or sell order that instructs the broker to fill the order completely or not at all. For example, if there are too few shares available to fill the order entirely, the order is negated (cancelled) when the market closes.
An AON order is considered a duration order because the trader gives instructions to the broker regarding how the order has to be filled, which affects how long the order remains active. AON orders that cannot be executed at the time of submission remain active during trading hours until they are filled or cancelled. This prevents partial fills, which is particularly useful when transacting with thinly traded securities. One major drawback is that, since these orders have specifications, they can take longer to execute than normal orders.
Type of order in which an agent or broker is instructed to execute a buy or sell order only when all parts of the order can be filled (complied with) together, otherwise to keep the order pending. If the intention is to cancel the order when it cant be so filled, the term fill or kill is used.
How to use All or none (AON) in a sentence?
- AON orders usually take longer to execute than normal orders.
- An all or none order is an instruction to fill the order completely at the specified price or cancel it.
- AON prevents partial fills, which is particularly useful when transacting with thinly traded securities.
Meaning of All or none (AON) & All or none (AON) Definition