Page 155

and as it goes with limit orders, your last 30 shares get purchased at a lower price than your $50 limit. If you end up with partial fills for your orders, you would normally still have to pay full commission. Completing the order (for example buying the remaining 30 shares) during the next day would mean a new transaction with another commission. As you may guess, partial order executions are caused by volume or price volatility in the stock you are trading. It's a small risk all traders must be willing to take. Some people however prefer to have their orders executed all at once or not at all. That is where AON comes in.Your broker may require a minimum number of shares in your order (e.g., 300 shares), before you can specify an AON order. AON orders also receive the lowest priority in execution order. That is, all normal orders are processed first before AON orders are attended to. For low volume stocks, this means your order may never get filled. For average investors trading well known stocks (which are usually traded at high volumes) there is no necessity for AON orders.While partial executions happen all the time, most investors end up having their entire order executed (in parts or as a whole) as long as enough volume is traded at your limit price or better (if entering a limit order).

With market orders this becomes less of an issue, but be aware that your order may be executed in fragments with different prices as the stock price moves around. For example, if you see that Ford is at $50 per share and you decide to sell 100 shares of Ford that you own at market price, chances are that all your 100 shares will be sold at $50 or perhaps the bid price of $49.75 per shares. But it is also possible that you may see this scenario: 20 shares sold at $50, 20 shares sold at $49.50, 20 shares sold at $49.75, and 40 shares sold at $50.125. Again, your order execution depends on volume and price volatility. …