What is an AON order?

What is an AON order?

An AON order is an acronym for ‘All or Nothing’ and is a type of trading order used by investors when they want to buy or sell a certain number of stocks at a specific price. This order can be a valuable tool for investors who need to get in and out of the market quickly, as it allows them to set their parameters without worrying about competing bids or offers.

AON orders are generally used when an investor needs to purchase or sell all requested stocks, ensuring that the entire transaction will be completed quickly rather than waiting for individual trades to execute over time. It also eliminates potential losses due to price changes during the trading period.

The benefits of using an AON order

One benefit of using an AON order is that it allows investors to set their buying and selling prices with minimal effort when stock trading, eliminating the need to constantly check market prices, or compete with other buyers or sellers, making it a relatively easy way to make trades. As such, investors can rest assured that they will get the best price for their stock without wasting time and energy searching for better deals.

Another benefit of using an AON order is that it minimises risk. Since all the stocks are purchased or sold simultaneously, there is no opportunity for losses due to fluctuations in the market before the transaction is completed. This security can be precious when dealing with large-scale investments, allowing traders to stay in control throughout the process.

Furthermore, AON orders can also be used as a form of portfolio diversification. By buying different stocks in bulk through an AON order, investors can reduce their overall exposure to a single asset, lowering their risk profile over time. This trading strategy may also help them maximise long-term profits by taking advantage of potential upside opportunities within a given sector or industry.

Finally, another advantage of using an AON order is that it significantly reduces transaction costs compared to traditional methods such as limit orders and market orders. Since all trades coincide through one order instead of multiple separate ones, investors don’t have to pay added fees for each trade which could add up quickly if done over some time.   These cost savings can help increase their overall return on investment over time and improve their financial situation significantly.

What are the drawbacks?

One of the main drawbacks of using an AON order is that it requires a higher upfront capital expenditure because investors must buy or sell more stocks at once, significantly increasing the amount of money they must commit to the transaction. This expense can be especially difficult for those just starting to invest as they may need access to such large sums of money.

Another potential downside is that traders may miss market opportunities due to their predetermined buying and selling prices. Since all trades are conducted simultaneously, investors need to take advantage of changes in market conditions that could increase their return on investment. As such, this strategy only allows them to capitalise on short-term gains or adjust their position should prices suddenly drop or rise.

In addition, AON orders also limit flexibility when making adjustments after the order has been placed. Once all stocks have been bought or sold, there is only a way for investors to make any changes as they are locked into their current positions at the end of the trading period, which means that even if trends or circumstances change quickly, they cannot take advantage and maximise their profits accordingly.

Finally, another issue with AON orders is that they are prone to slippage due to price volatility in the stock market over time. This slippage occurs when trades are filled at prices different than those requested by investors and can lead to further losses due to unfavourable conditions in the market before transactions occur. This risk can be particularly damaging for smaller-scale investments as any losses incurred could quickly eat away at already limited resources.


Overall, an AON order is a valuable trading strategy that can benefit investors due to its convenience and risk-minimizing capabilities. It can also help reduce transaction costs and provide portfolio diversification benefits. By taking the time to do your research and weighing up the risks against potential rewards, you can ensure

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