Definition
FIFO stands for first in, first out. In trading, it means the oldest open lot of an asset is treated as the first lot to be closed when a sell occurs.
In practice
FIFO affects cost basis, realized PnL, and trade review because each buy can carry a different entry price and open time.
You see FIFO in portfolio accounting and trade review when repeated buys of the same asset are tracked as separate lots.
Editorial information
- Author
- ZEROHUE Team
- First published
- March 16, 2026
- Last updated
- March 24, 2026
Related reading
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