The Upcoming FIFO Rule

[SVP]

Here is an excerpt of the FIFO rule text,

(b) Offsetting Transactions

Forex Dealer Members may not carry offsetting positions in a customer
account but must offset them on a first-in, first-out basis. At the
customer's request, an FDM may offset same-size transactions even if
there are older transactions of a different size but must offset the
transaction against the oldest transaction of that size

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An interruption: (All trades place in the same direction)

If you open a trade on EURUSD @ 1.4144 of 0.1 lot, then opens anothe
trade on EURUSD @ 1.3903 of 0.1 lot, the first trade of price 1.4144
will be closed.

If you open a trade on EURUSD @ 1.4144 of 0.1 lot, then open another
trade on EURUSD @ 1.3903 of 0.02 lots, then both trades remain open
and are unaffected by the FIFO rule.

If you open a trade on EURUSD @ 1.4144 of 0.1 lot, then open another
trade on EURUSD @ 1.3903 of 0.02 lots, then open a third trade on
EURUSD @ 1.3817 of 0.01 lot, then the first trade of price of 1.4144
will be closed while the second trade of 1.3903 remains unaffected.


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