What is an All or Nothing Order (AON)?
All or nothing (AON), also known as an "all or none" order, is a condition used on a buy or sell order which instructs a broker to execute the order in its entirety or to do nothing.
How Does an All or Nothing Order (AON) Work?
For example, if you wanted to purchase 1,000 shares of Company XYZ at $5 per share "all or nothing," the broker would have to find all 1,000 shares at $5 in order to complete the transaction. If the broker could provide 900 shares at $5 and 100 at $5.05, then the order would be cancelled at the end of the day.
The order is also known as "All or None."
Why Does an All or Nothing Order (AON) Matter?
AON trades prevent investors from having orders partially filled. This is why they are particularly useful for thinly traded securities. However, AON orders (for both buyers and sellers) have the disadvantage of being lower in priority than orders without special instructions. This means it can take longer to fulfill an all-or-nothing order.