An All or None (AON) order is a type of order placed on a financial exchange to buy or sell a specific volume of assets at a predetermined price. What sets an AON order apart from other order types, such as market orders or limit orders, is that it includes specific instructions on how the order should be executed.
When an investor places an AON order, they indicate that the entire order must be filled in its entirety, or not at all. This means that if the exchange cannot fulfill the entire order at the specified price, the order will be canceled, and no partial execution will occur.
The purpose of an AON order is to ensure that the investor receives the full volume of assets they desire or none at all. It is often used when investors have strict requirements for the size or completeness of their positions. By using an AON order, investors aim to avoid having their orders partially filled, which could lead to undesirable outcomes or inefficiencies in their investment strategies.
It's worth noting that the execution of AON orders may depend on the liquidity and availability of the assets in the market. If the desired volume of assets is not available at the specified price, the order may be canceled entirely. Therefore, AON orders require careful consideration of market conditions and liquidity before being placed.