All or nothing (AON) is an instruction from the buyer or a seller to either execute the order fully or to not execute at all. The order will remain pending until all the required number of shares are available to be bought at once. This means that a partial order cannot be executed.
For example, if Mr. A wishes to buy 100 shares at Rs. 10 each, and there are only 40 shares available to be bought because of high demand of shares, the 40 available shares cannot be bought. The order will only be executed when there are 100 shares available in the market to be bought.
The order placed remains pending until it is cancelled by the buyer/seller. Therefore, one disadvantage of AON is that later when the shares are available and the price of the shares increases, the order will get executed at that price. One way of preventing that the limit option where you can put the maximum price at which you are ready to buy the shares or in case of sell, the minimum price at which you are ready to sell the shares. Another disadvantage is that there might be delay in execution of the order.
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