First In, First Out
a.k.a. FIFO, FIFO rule
A rule, required for US retail forex accounts, that the oldest open position in a pair must be closed first.
In plain English
A rule, required for US retail forex accounts, that the oldest open position in a pair must be closed first.
Under FIFO, if you open several trades in the same pair, you must close them in the order you opened them. US rules also stop you from holding a buy and a sell in the same pair at once ('hedging' in one account).
Traders outside the US may not face this rule. It mostly affects people who like to layer multiple positions with different stops and targets.
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