Holiday Schedule
 Forex
Friday , 12/23/2011 Normal Hours
Monday , 12/26/2011 18:00 ET Open
Tuesday , 12/27/2011 Normal Hours
Friday , 12/30/2011 Normal Hours
Monday , 01/02/2012 02:00 ET Open
Tuesday , 01/03/2012 Normal Hours
Hours are in Eastern Time (US)
All times are subject to change by individual exchanges

Trading on GTS under the new

NFA FIFO Rules

On August 2, 2009 the NFA implemented Compliance Rule 2-43 (b) which states, "Forex Dealer Members (FDMs) may not carry offsetting positions in a customer account but must offset them on a first-in, first-out basis."

  • This rule directly impacts the way traders manage risk, especially through the use of stop loss or take profit orders.

  • The FIFO (First-in, First-out) method for trading means that the oldest trade of an instrument will be the first closed, or reduced, when a trade is done in the opposite direction in that same instrument.
For more information & detailed examples:
• Live Demonstration Tutorial: Trading under FIFO on GTS
• NFA Regulation FAQs


 What does First In, First Out – FIFO Mean?

In an effort to clarify the "FIFO" rule, below is an example of trades that are executed in the order indicated.

Example #1:
August 3, 10:00 Ticket #1 Buy EUR/USD 1,000,000
August 3, 11.34 Ticket #2 Buy EUR/USD 500,000
August 4, 08:30 Ticket #3 Buy EUR/USD 350,000
August 4, 09:15 Ticket #4 Buy EUR/USD 650,000
TOTAL Positions: Long EUR/USD 2,500,000

August 4, 10:15 a market order to sell EUR/USD 1,200,000:
Full close Ticket #1 Sell EUR/USD 1,000,000
Partial close Ticket #2 Buy EUR/USD 200,000
TOTAL Positions: Long EUR/USD 2,500,000

Break down of remaining positions:
Full close Ticket #2 Long EUR/USD 300,000
Partial close Ticket #3 Long EUR/USD 350,000
Partial close Ticket #4 Long EUR/USD 650,000
TOTAL Positions: Long EUR/USD 1,300,000


Example #2:
August 3, 10:00 Ticket #1 Buy EUR/USD 1,000,000
August 3, 11.34 Ticket #2 Buy EUR/USD 500,000
August 4, 08:30 Ticket #3 Buy EUR/USD 350,000
August 4, 09:15 Ticket #4 Buy EUR/USD 500,000
TOTAL Positions: Long EUR/USD 2,350,000


August 4, 10:15 via the open trades window, Ticket #2 can be manually closed as it is the oldest trade of that size

Break down of remaining positions:
Full close Ticket #2 Long EUR/USD 300,000
Partial close Ticket #3 Long EUR/USD 350,000
Partial close Ticket #4 Long EUR/USD 650,000
TOTAL Positions: Long EUR/USD 1,300,000