What does it mean if an order is marked as "all or none"?

• A. The order will be partially filled if possible
• B. Only complete orders will be processed
• C. The order can be split over multiple days
• D. It will execute at any time during the day

Answer: (B)

When an order is marked as "all or none," it indicates that only complete orders will be processed. This means that the order must be filled in its entirety; if the full quantity of the order cannot be filled at one time, then none of it will be executed. This is an important strategy for traders who want to ensure that they do not end up with only a partial execution of their order, which may not serve their intended trading strategy or risk management practice.

The options indicating partial fills or that the order could be executed over multiple days do not align with the definition of "all or none.” Such characteristics would allow for flexibility in order execution that contradicts the concept of ensuring that the entire amount is filled in one go. Additionally, stating that it will execute at any time throughout the day does not relate to the "all or none" condition, as this order type focuses more on the completeness of the order rather than timing flexibility.