Table of Contents
What is an all-or-none order?
How and when might investors use all-or-none orders?
What is the difference between an all-or-none order and a fill-or-kill order?
The bottom line
Aug 12, 2022
5 min read
AON orders are executed in single transactions and are sold at the same price. It’s difficult to fill an all-or-none order especially in lightly traded penny stocks.
Investing often requires making tough decisions, but sometimes the choices are obvious. When investors are certain that they want to buy or sell a specific number of shares they might turn to what’s known as an all-or-none order. They also can be used strategically to test the sentiment of other investors.
An all-or-none(AON) order is an order to buy or sell a stock that has to be carried out completely, or not at all. If an AON order can’t be executed, it remains active until the entire order can be filled. Or, based on the investor’s instructions, it can persist until it’s canceled, renewed, or it expires. Because the entire block of shares will be bought or sold at once in a single transaction, AONs are executed at the same price. In some cases, investors also specify a price at which they’d like to fill the order.
AON orders are one of many conditional orders investors can make to ensure that they buy or sell under conditions that they determine in advance. Partial orders, in which a broker can’t purchase all the shares a buyer wants, won’t be filled if an AON order is in effect. Because of the potential difficulty in filling an all-or-none order, they are used less often than orders without conditions. AONs are particularly popular for trading in low-volume penny stocks that aren’t listed on exchanges.
For example, an investor wants to buy 100 shares of XYZ Corp. and places an AON order with a broker. If 100 shares can be found, the order will execute. But if the broker can only find 65 shares available for sale, the order will stand until all 100 shares are available for purchase. There is, of course, no guarantee the broker will ever find that many shares, and the order won’t be fulfilled.
The same can happen with an AON sell order. Suppose an investor wants to sell 500 shares of ABC Inc. The investor’s broker will have to find a buyer for all 500 shares, or the order won’t be executed. As with a buy AON, the order will persist until it’s filled, canceled, or expires.
Like limit orders and stop orders, an all-or-none order is a conditional order that won’t be executed until the terms are met. AON orders are the opposite of an any-part-of order, in which a broker is instructed to execute part of the order even if the rest of the order can’t be filled.
AONs can be day orders—only good during a single trading day—or good-till-canceled orders, which are valid for months until they are revoked. Like most other types of stock orders, all-or-none orders can be placed through a traditional broker or trading app.
All-or-none order can be used strategically to test the strength of the stock market. For example, if an all-or-none purchase order is easily filled, it suggests that current shareholders might think the stock won’t rise much or could even fall and are happy to sell. On the other hand, if the order isn’t filled, that could mean investors think the price will increase and are unwilling to sell at or near current levels.
AON orders also are often used for buying or selling so-called penny stocks—thinly traded, low-price stocks that aren’t listed on exchanges and trade directly between investors—because a partial order will result in an insignificant investment. But such orders can be difficult to fill for stocks with low volume, whether they’re penny stocks or even bigger ones that are listed on exchanges.
If an investor wants to buy or sell a certain number of shares but will settle for having some of the order filled, they may consider using an any-part-of order rather than an all-or-none order. If an any-part-of order is used, the broker would simply buy as many shares as possible.
All-or-none orders often won’t be filled immediately and if investors want to buy at current prices, they risk missing out by using this type of order.
Trying to buy a block of shares all at once, especially in thinly traded securities, is not always possible or may take some time. Prices could change drastically while a big block of shares is being found, especially for penny stocks or other thinly traded shares.
And if investors are dumping a sinking investment, that may be precisely the time a large number of shares hit the market as other investors also try to liquidate their holdings. If shares suddenly flood the market, that potentially could make an all-or-none sale even harder.
A fill-or-kill (FOK) order combines an all-or-none order and a requirement that it be filled right away or canceled, which is known as an immediate-or-cancel order (IOC). FOK orders don’t allow for partial fills. Investors who use FOK orders want their order to be filled immediately no matter what. These orders sometimes are used when investors are concerned about price fluctuations.
FOK orders can help investors get the price they want when investing in volatile stocks. A fill-or-kill order and the related immediate-or-cancel order—which permits partial execution—contrasts with a good-till-canceled order, which persists until it’s called off.
Investors use all-or-none orders when they want to buy or sell a precise number of shares and are unwilling to settle for less than that amount. They can be combined with other parameters, such as a specified price. Like most other types of orders, AON orders can be done through a broker or trading app.
Because AON orders are executed in a single transaction, they’re bought and sold at the same price. But it can be difficult to fill an all-or-none order, especially in lightly traded penny stocks—where they are especially popular. Like some other conditional stock orders, there’s a chance an all-or-none order can’t be satisfied and therefore won’t be executed.
At Titan, we are value investors: we aim to manage our portfolios with a steady focus on fundamentals and an eye on massive long-term growth potential. Investing with Titan is easy, transparent, and effective.
Get started today.
Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Titan has not independently verified such information and makes no representations about the accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; Titan has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any strategy managed by Titan. Any investments referred to, or described are not representative of all investments in strategies managed by Titan, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see Titan’s Legal Page for additional important information.
You might also like
What Is a Sell-Stop Order? Examples & How To Place One
Sell-stop orders give investors a way to limit losses or take a profit by setting a price below market levels at which their investment will be sold.
Different Types of Stock Orders
Stock investors have the option of using different types of orders. Three main types of trade orders are available: market order, limit order, and stop order.
Stop-Limit Orders: Definition, How They Work and Pros & Cons
Stop-limit orders are used as a strategy for controlling risk when trading financial assets such as stocks, bonds, commodities, and foreign exchange.
Stop-Loss Orders & How They Work
Learn all about how stop-loss orders can help investors achieve a variety of goals by setting floor and ceiling prices that can limit a loss or lock in a profit.
© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at firstname.lastname@example.org. 508 LaGuardia Place NY, NY 10012.