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General TradingF
First In First Out (FIFO)
First In First Out (FIFO) is an accounting and order management method where the earliest opened positions are closed first. It is the mandated order-closing method for U.S. forex traders under NFA regulations, preventing selective position closing.
Example
“Under FIFO rules, when the trader wanted to close one of their three EUR/USD positions, the broker automatically closed the oldest position first rather than allowing them to pick the most profitable one.”