Definition
The term All-or-None order refers to broker instructions to buy or sell a quantity of securities in their entirety, or none at all. If an All-or-None order cannot be executed immediately, it remains open until it is executed or is closed at the end of the trading day.
Explanation
Typically used when referring to stocks, an All-or-None (AON) order instructs a broker to buy or sell a predetermined amount of securities in their entirety or do not execute the transaction. A partial sale or purchase is not considered acceptable. The order can only execute if a single transaction can cover all of the designated shares.
An AON order remains active until cancelled. If the supply of securities does not allow for the execution of the transaction at the desired quantity, the order may be canceled at the close of the trading day.
Example
An investor places an AON order for 1,000 shares of Company ABC at $35.50 per share. At this point, the broker does not fill the order until they can obtain 1,000 shares at $35.50. If there are only 500 shares available at $35.50, the order is not partially filled. If 1,000 shares do not materialize at this price, the order is canceled at the end of the day. If the investor still wishes to obtain 1,000 shares at this price, the order will have to be placed again the next trading day.
Related Terms
The term day order refers to broker instructions to buy or sell a security that automatically expires at the end of the trading day if not executed. Unless specified by the investor, the default orders to buy and sell stocks at most brokerage houses are day orders.
Moneyzine EditorJanuary 15th, 2024
The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order. From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorJanuary 18th, 2024
The term Good-Til-Canceled refers to broker instructions to buy or sell a security at a fixed price, and the order will remain active until the investor cancels it or it is filled. From a practical standpoint, a Good-Til-Canceled order specifies the instruction will remain active even if it is not filled on the same trading day.Moneyzine EditorJanuary 19th, 2024
The term Immediate-or-Cancel refers to broker instructions to buy or sell a security instantly, or cancel the order. From a practical standpoint, an Immediate-or-Cancel order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorJanuary 19th, 2024
