All or None Order (AON) Definition
In the world of cryptocurrency, an All or None Order (AON) is a type of order where the buyer or seller instructs their broker to either fill the order entirely or not at all. This means that the seller will only sell their entire amount of cryptocurrency and the buyer will only buy if the total amount is available.
All or None Order (AON) Key Points
- An AON order will only be executed if the entire number of coins in that order can be filled.
- This type of order is used by traders who want to buy or sell a large amount of crypto and don’t want partial fills.
- It can lead to orders not being fulfilled if the total amount isn’t available in the market.
What is an All or None Order (AON)?
An All or None Order in crypto trading signifies that the entire order must be executed or, if this is not possible, the order is not executed at all. This ensures that partial order fillings, which can happen in large and fluctuating markets such as cryptocurrency, do not occur.
Why use an All or None Order (AON)?
Traders may choose to use an AON order when they have a large amount of cryptocurrency to buy or sell and want the entire order to be filled at once. This is a way to protect themselves from price slippage, which is when the price changes in the time between placing the order and the order being filled.
How does an All or None Order (AON) work?
An AON order works by stipulating that the entire quantity of the order must be filled or none of it. For example, if you want to sell 50 Bitcoin and you place an AON order, the order will only be executed if there is a buyer wanting to buy 50 Bitcoin. If there’s only a buyer for 40 Bitcoin, the order won’t execute.
When is an All or None Order (AON) used?
This type of order can be used when dealing in large volumes of cryptocurrency or in highly volatile markets where price swings can make partial fills unfavorable. It’s helpful in managing risk and ensuring total transactions are completed without fractions.
Where can you place an All or None Order (AON)?
Most cryptocurrency exchanges and platforms that offer advanced trading options allow traders to place AON orders. Some of these platforms include Binance, Kraken, and Bitfinex.
Challenges of All or None Order (AON)
While AON orders could be beneficial in certain circumstances, their rigid nature could also lead to certain orders not being filled at all, especially in a market where availability fluctuates. An AON order remains pending until the full amount is available, which can sometimes take a lengthy duration or might not even occur, depending on market conditions.
