US Traders What is the FIFO rule when adding to your position?

Beginner Questions
1

I’m trying to add to my position and getting a “talk to your broker about FIFO rules” error message.

Is the order type that’s the problem, or just because I have an active order and I cant have two orders on the same pair, even if it’s in the same direction?

2

Fifo means first in first out. In trading it means you have to close the first order you placed before you can close the second.

It’s stupid and breaks some potentially profitable strategies.

2 Likes
3

Oh and I think there’s some difference to do with stop and limit orders, but my broker doesn’t have this rule so not sure

4

Is this related to hedging I guess not being supported in the US?

5

Okay more info from BP too

6

that would make sense

7

Did you find a fix for it?

8

I think I figured out, at least when trading in the same direction, I can definitely still make multiple orders.

On the FIFO, here’s the special language with my broker, Oanda.

https://financefeeds.com/oanda-prepares-fifo-changes-implementation/

“First in First Out (FIFO) is an FX trading requirement that complies with the United States National Futures Association (NFA) regulation. It is a requirement that the first (or oldest) trade must be closed first if a customer has more than one open trade of the same pair and size.”

Pair AND size.

9

But I think it closes part of the oldest one if it’s bigger than the second

10

We got examples!