When they open positions with that in mind, they can manually close any one that they want to, without worrying about which one was opened first. MT4 will have the same restrictions as OANDA’s proprietary OANDA platform. However, OANDA is unable to inform customers of these cancellations when they are running expert advisors (EAs), although they will still receive a message in their MT4 Mailbox.

An example would include incidents where there are issues with third-party vendors. If you wanted to close Position 4 manually, you can because there are no other positions of the same exact size older than Position 4. If you wanted to close 25,000 units with a market order, that 25,000 units will be pulled from Position 1 because it is the oldest position.

FIFO trading is when you close positions in the same order in which they were originally opened. The FIFO rule is applicable on the US Forex trading market. It is so because the Forex FIFO rule is imposed to traders in US by the local brokers.

1. If you’re using Expert Advisors, you can trade different currency pairs so that you don’t break the FIFO rule.
2. If you have open trades with multiple Expert Advisors and they all have the same lot size, the rule will apply.
3. In conclusion, getting around the FIFO rule can be challenging, but it is not impossible.
4. The FIFO rule in forex trading can be confusing and often misunderstood.

NFA Compliance Rule 2-43b is the rule that traders are speaking of whenever they refer to the Forex FIFO rule. It was implemented within the US Forex industry by the sector’s self-regulatory organization – the National Futures Association or NFA. We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools.

This can limit their ability to execute specific trading strategies that rely on the selective closure of positions. The westernfx NFA believes that the FIFO rule helps to promote a fair and transparent forex market. By requiring traders to close out their oldest positions first, the rule ensures that traders cannot engage in hedging and manipulate the market.

Utilize different trading accounts:

The FIFO rule can prevent them from doing so, potentially impacting their trading strategies and profitability. One of the key benefits of the FIFO rule is that it helps maintain transparency in the market. By closing the oldest positions first, traders are prevented from manipulating their trading activity to achieve a desired outcome. This ensures a fair and level playing field for all market participants and promotes trust in the forex industry. In conclusion, getting around the etoro review FIFO rule can be challenging, but it is not impossible.

“I can’t hedge my positions”:

Now, the other issue is that US traders cannot find brokers which allow hedging. One broker is FXChoice which we have listed in our trusted brokers‘ page exactly for the reason that they allow US traders. You can open a Demo account and put each Expert Advisor with a different lot. So the first Expert Advisor, the first strategy, you can put with 0.01, then with 0.02, and so on. And when you follow the strategies’ performance in FX Blue, you should be looking not at the Net profit but at the Net pips. Just arrange the Expert Advisors according to their performance, and scroll to the right to find the column with the pips.

Understanding NFA Compliance Rule 2-43b

Traders should implement their strategies as safely they can. If you’re using a broker that only allows FIFO trading, and you want to use a portfolio of strategies, you may need to look at trading different currency pairs. Some traders are very particular about their Expert Advisors. It’s not simple to change the lot size on that type of strategy. In that case, you won’t want to make any changes to that.

Understanding the FIFO Rule in Forex Trading: A Beginner’s Guide

But having many MetaTrader platforms installed on the computer is pretty heavy. MT4 is the platform that was developed before the FIFO rule. That is, it was not required for Forex brokers to close the oldest trade first when MT4 was the only product available from MetaTrader. FIFO doesn’t technically apply with trades of different sizes.

If you try to close Position 3, the platform will inform you that Position 1 needs to be closed first. Keep in mind that there are no brokers in US that will break the First In FIrst Out rule. Check out this insightful forum post by a fellow US trader who documented an experiment with the FIFO rule and Forex.com. If your broker is in the United States, they probably use FIFO. The FIFO rule applies to all Forex brokers in the United States.

The FIFO rule is enforced by some regulatory bodies, including the U.S. The purpose of the FIFO rule is to prevent traders from engaging in certain types of hedging strategies. Traders should be aware of this rule and consider its implications when opening and managing multiple positions in their forex trading accounts. Furthermore, the FIFO rule helps in preventing traders from engaging in aggressive trading strategies.

This would be so even if all three are for the same currency pair. They can’t make price adjustments to an executed order. Dealers can change the price ONLY if that resolves a complaint in the client’s favor. In Dec. 2017, the NFA approved an amendment to Rule 2-43b.