All or None Order (AON)

What is All-or-None (AON) Order in Crypto?

An AON is a specific type of order placed on a cryptocurrency exchange. It specifies a set price and a desired volume of cryptocurrency to buy or sell. The key aspect is that the entire order must be fulfilled to be considered executed.

An AON order differs from a standard buy order because it requires complete execution. You either get the entire quantity you requested, or the order gets canceled entirely. This makes AON orders specifically useful for traders who need precise position sizes and can’t work with partial fills.

How Does an All or None Order Work?

Here’s a breakdown of how AON orders work in crypto:

• Execution: The order is executed only if the entire quantity can be bought or sold at the specified price.
• Cancellation: If the entire quantity cannot be executed, the order is canceled, and no partial execution occurs.
• Price: The order is executed at the specified price or better.
• Quantity: The order is executed for the entire specified quantity.

When Should Traders Use AON Orders?

• Precision in Execution: AONs are useful when you have a specific price target and want the entire order filled at that exact price or not at all.
• Market Volatility: In volatile markets, AONs can help avoid partial fills due to price fluctuations.
• Large Orders: For large orders, AONs ensure the full amount is traded, potentially minimizing market impact.
• Avoiding Multiple Transaction Fees: By ensuring the entire order fills at once, you avoid paying multiple transaction fees that would occur with several partial fills. This is especially important on exchanges with per-transaction fee structures.

How is AON Different From Other Order Types?

AON vs. Market Order

• AON: Execute the entire quantity at the specified price or better.
• Market Order: Execute the order at the best available price, regardless of quantity.

AON vs. Limit Order

• AON: Execute the entire quantity at the specified price or better.
• Limit Order: Execute the order at the specified price or better, but allow partial execution.

AON vs. Immediate-or-Cancel (IOC) Order

• AON: Execute the entire quantity at the specified price or better, or cancel the order.
• IOC: Execute the order immediately, or cancel any unfilled portion (allows partial execution).

Differences Between Major Order Types

All or None vs Fill or Kill Orders

While both AON and Fill or Kill (FOK) orders require complete execution, they differ in timing:

• All or None: The order remains active until it can be completely filled at your specified price. It can sit in the order book for hours or days waiting for enough liquidity.
• Fill or Kill: Must execute immediately and in full, or it’s canceled instantly. FOK orders don’t wait for liquidity to build up.

For example, if you want to buy 10 Bitcoin at $43,000 with an AON order, the exchange will wait until 10 full BTC become available at that price. With FOK, if those 10 BTC aren’t available right now, the order cancels immediately.

Traders use AON when they have time to wait for the right price and full quantity. They use FOK when they need immediate execution or nothing. Both protect against partial fills that could leave you with awkward position sizes.

Key Takeaway

AON orders may not always be executed, especially in volatile markets or when trading low-liquidity assets. It is essential to understand the risks and limitations of AON orders before using them in your crypto trading strategy.

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