All it does is make my journaling job more difficult. I don’t see any benefits of the law.
That would First In First out: You will pay more attention to the current trades and avoid crazy losses because you got your eye on each trade.
Is that what they’re concerned about? There’s already something called margin and maintenance margin to limit crazy losses.
You are not smart enough to not do stupid things. You are not smart enough to realize you are not smart enough to not do stupid things. Only faceless bureaucrats know what you should or should not do with your money. After all, why should you do whatever you want with your money? People with a progressive mindset, however, have decided to save you from yourself and have decided that they will restrict you and every other stupid person (in their view) from doing stupid things with their own money. From now on, you will only be permitted to do what others deem you should do with your own money.
Welcome to a brave new world.
It’s an IRS income tax issue, not “big brother” knowing what’s best for us little people.
In theory FIFO prevents you from stretching a short-term capital gain into a long-term capital gain.
The rules are implemented because of long-term position traders and not your average small-time retail trader.
Makes sense now. Strange they implemented it only 2 years ago.
It’s been part of the SEC rules for at least 7- 8 years, seems the CTFC was slow getting to the game.
It only came in after the CFTC was finally given regulatory authority over retail forex - and then had to take some time to develop and roll out the rules. Before there was no regulator.