posted
What is the advantage or disadvantage of placing an AON order vrs a regular order? Sometimes I place large orders but have never put it in as an AON order. Should I be doing this? Thanks in advance!
Posts: 62 | From: Nappa Valley | Registered: Jan 2007
| IP: Logged |
posted
putting an AON designation gives you no standing in the book. you are always at the back of the line. the only advantage is that you get your whole order filled at once. no partials. potentially a commission saver but you give up your standing.
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
| IP: Logged |
posted
I like to place AON orders only if it is for a whole bunch of shares of a very low priced stock. Because otherwise, as metal1 inferred, you sometimes get stuck with a partial fill and then it isn't even worth the commission to sell it.
For example, I've had orders fill for 100 shares at .10 before when I really wanted 10,000 shares. So I was stuck with $10.00 worth of shares that cost me $19.99 in commission to buy and sell!
But in most cases, with regular big board stocks, it is better to not use the AON.
Mainly because let's say you want to buy 1000 shares and you put it in as AON, and there are two sellers with 500 shares each to sell. They will not fill your order. You would have to wait for someone with 1,000 (or more) shares to sell. Reverse happens when you are selling. If you are trying to sell all 1000 shares, but there are a bunch of folks with orders in to buy 100 and 200 shares, you will never get filled unless there is someone who wants all 1000 shares.
Jo
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
| IP: Logged |