A trading rule that requires multiple open positions in the same instrument to be closed in the order they were opened (the oldest trade is closed first). This rule is mandated by regulators in the U.S. (NFA Compliance Rule 2-43b), effectively preventing hedging on those accounts. For example, if a robot opens three EUR/USD trades, and then wants to close one, it must close the first trade in the sequence under FIFO. Forex robots designed to hedge or manage individual positions independently may not function as intended under FIFO restrictions – they would need modifications to operate on U.S. broker accounts.

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