An All-or-None (AON) order in crypto trading designates a specific instruction to execute a transaction only if the entire requested quantity of the digital asset can be filled at the specified price or better. This type of order precludes partial fills, ensuring that either the complete order is processed as a single unit or no part of it is executed. It serves to guarantee the full size of a position, which is particularly relevant for large block trades in illiquid or volatile cryptocurrency markets, preserving intended trade size integrity.
Mechanism
The operational logic for an AON order within a crypto trading system requires the order management system (OMS) or smart contract to perform a comprehensive check for available liquidity at the time of execution. When an AON order is submitted, the system scans the order book or available liquidity pools to ascertain if the entire volume can be matched instantaneously. If insufficient liquidity exists to satisfy the full quantity, the order is not filled and remains pending or is cancelled, preventing fragmented execution across multiple price points or counterparties. This ensures atomic execution conditional on full quantity availability.
Methodology
The strategic rationale behind utilizing an AON order is to mitigate market impact and prevent adverse price movements that can arise from executing large orders in segments. In institutional options trading or RFQ crypto scenarios, an AON approach ensures that a trader’s desired position size is achieved without accumulating multiple smaller fills at potentially unfavorable prices, which can significantly distort the average execution cost. This methodology is often employed by large-volume participants seeking to control execution quality and reduce slippage risk on substantial digital asset transactions.
Legging risk variance between RFQ and CLOB is a function of risk transference: RFQ externalizes it to dealers for price certainty, while CLOB internalizes it, demanding algorithmic precision.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
