^GSPC$7,391.70-1.20%^IXIC$24,812.55-1.51%^DJI$42,354.14-1.08%^VIX$26.92+0.90%^STOXX50E$65.92-2.04%BTC-USD$79,104.51-2.44%ETH-USD$2,224.57-2.58%SOL-USD$89.32-3.05%AAPL$300.23+0.68%MSFT$421.92+3.05%NVDA$225.32-4.42%TSLA$422.24-4.75%META$614.23-0.68%GOOGL$396.78-1.07%AMZN$264.14-1.15%AMD$424.10-5.69%EURUSD$1.1625-0.01%GC$4,537.84-0.05%CL$101.14-0.84%^GSPC$7,391.70-1.20%^IXIC$24,812.55-1.51%^DJI$42,354.14-1.08%^VIX$26.92+0.90%^STOXX50E$65.92-2.04%BTC-USD$79,104.51-2.44%ETH-USD$2,224.57-2.58%SOL-USD$89.32-3.05%AAPL$300.23+0.68%MSFT$421.92+3.05%NVDA$225.32-4.42%TSLA$422.24-4.75%META$614.23-0.68%GOOGL$396.78-1.07%AMZN$264.14-1.15%AMD$424.10-5.69%EURUSD$1.1625-0.01%GC$4,537.84-0.05%CL$101.14-0.84%
RockstarMarkets
All glossary
Execution

FIFO (First-In First-Out)

Position-closure rule requiring the oldest opened lots to close first. US FX brokers are FIFO-mandated by NFA.

What it means

FIFO requires that when you close part of a multi-entry position, the broker closes the lots in the order they were opened. Multiple lots in the same direction are treated as one ordered queue. NFA-regulated US FX brokers must enforce FIFO; most non-US brokers don't.

Why it matters

FIFO breaks any strategy that depends on hedging or on independently managing entry lots. You can't, for example, hold a long EUR/USD entry from yesterday at 1.0800 and open a separate short EUR/USD scalp at 1.0850 — under FIFO the short would automatically close the older long first. Strategies built around independent lot management require a non-US broker.

How to use it

If trading with a US broker, structure your strategy to never have offsetting positions in the same pair simultaneously. For multi-position strategies (hedging, lot-level scaling), use a non-US-NFA broker (IB Pro, Saxo, OANDA-Asia, etc.).

Take it further

Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.

Ask Rocky