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There are two types of orders that are considered to be less beneficial
than most by pro traders.
FOK and AON.....both are viewed as benefiting the floor versus the
customer.
The assumption is that a FOK is a "fishing trip" most often indicating
that if killed an order will follow that may better fit the crowds
needs. FOK in quiet markets are obviously more likely to be filled
because the crowd is generally less likely to need a position to
complete a hedge.
AON is simply suicide. It is generally done to keep commission costs
low(avoid partial fills). In reality it is a stop order against the
crowds outstanding position. It doesn't exist except between the crowd
and the customer....in securities market it CANNOT be displayed on the
trading screens(FOK can't be displayed either). Any move of the
underlying that would harm the price assures a fill. You often save
transaction costs but almost always get a worse fill.
Try an IOC......you can get a partial. Somebody just bought some of
these or sold them..with an IOC they could get a quick scalp...fill
you...and be out. You might get a partial fill.....Which would you
rather get a bad fill or pay a little more commission?
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