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Series 7 practice questionmediumOrder Types — AON Orders

How does an All-or-None (AON) order differ from a Fill-or-Kill (FOK) order?

  1. AAn AON order does not need to be filled immediately, while a FOK order does✓ Correct answer
  2. BAn AON order can be partially filled while a FOK order cannot
  3. CAn AON order has a higher priority on the order book than a FOK order
  4. DAn AON order can only be used for equity securities
Explanation

Why A — An AON order does not need to be filled immediately, while a FOK order does

Both AON and FOK orders require that the full quantity be filled without partial execution. The key difference is timing: a FOK order must be filled immediately in its entirety or it is cancelled, while an AON order remains on the book and can wait for the full quantity to become available throughout the trading day (or longer if it is also a GTC order). Neither order type has priority advantages over the other on the order book.

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