What is First-In-First-Out (FIFO) in Crypto Trading?
Trading is just much more than placing trades, setting Take Profits and stop losses, and hoping a trader's call is correct.
In some instances, a broker would consider the order of trades in an extreme case of liquidation or margin calls.
FIFO is an accounting style in which trades are closed in an order in which they were opened.
In FIFO, an exchange issuing a margin call will proceed to close out the earliest trade-in that order until the latest trade before setting the margin account to zero.
Margin calls and the FIFO trading condition serve to protect the trader's interest against negative balances.
However, by and large, a client-facing CFD exchange like CryptoAltum doesn’t impose any restriction on traders. Under ordinary trading circumstances, they are free to close trades in any order they deem fit.