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oanda fifo violation when Placing Order: Understanding its Impact on Forex Trading

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Oanda’s FIFO (First-in-First-Out) rule is a regulation imposed by the CFTC (Commodities and Futures Trading Commission) that stipulates that when placing multiple orders on the same currency pair in a single account, those orders must be closed out (bought/sold) in the opposite sequence in which they were opened. This rule prevents the trading of a currency pair multiple times in the same account, which could lead to potential tax fraud or manipulation. Violations of the FIFO rule could result in serious repercussions, such as the closing of accounts and income forfeiture.