FIFO rule in forex: how to follow TP1, TP2 and TP3 in the US

The FIFO rule, short for first in, first out, means a US forex account closes trades in the same pair oldest first and holds one direction per pair. To follow a Forexuro signal with three targets under FIFO, you open one position and close part of it at TP1, TP2 and TP3, moving the stop to entry once TP1 is hit.

That is good news for anyone following Forexuro from the US, because it is exactly how the desk already manages its trades. This guide explains the rule, shows the method on a real TP3 trade from our public record, and gives the median target distances so you know what to expect from each part of the position.

What the FIFO rule says: NFA Rule 2-43

US retail forex firms follow National Futures Association Compliance Rule 2-43. Part (b) of the rule says a firm may not carry offsetting positions in a customer account and must offset them on a first-in, first-out basis. In plain terms, two things follow for your account:

• Oldest first. If you hold more than one trade in the same pair and close some of it, the oldest trade is the one that closes.
• One direction per pair. A new sell in a pair where you are long reduces the long position rather than opening a separate short.

The rule has one practical option: at your request, the firm can close a trade of the same size as a new order, as long as it is the oldest trade of that size. For a signal follower none of this is a hurdle, because a Forexuro signal is always a single trade in a single direction.

One position, three partial closes

Outside the US, some traders follow a three-target signal by opening three separate trades, each with its own take profit. In a US account the clean way is one position. Open the full size at the entry with the stop attached, then reduce it as each target is reached:

1. At TP1: close the first part and move the stop on the rest to the entry price.
2. At TP2: close the second part.
3. At TP3: close the rest.

With one position there is only one entry price, so first in, first out never changes which part you are closing, and each partial close is booked at the target price. A simple set-up is to attach TP3 to the order and close the earlier parts at TP1 and TP2 by hand when the desk's update arrives. The take profit ladder guide covers how to split a position between targets.

Moving the stop to entry after TP1

This is the step that makes the three-target structure work, and it is how Forexuro manages every trade: once price has moved in favour and TP1 is hit, the stop goes to the entry price. From that point the rest of the position runs with the entry protected. If price then comes back, the record shows the trade as breakeven with zero pips, and the methodology page explains exactly how that is scored. Breakevens are listed separately and are never counted as wins.

Under FIFO the step is simple: there is one position, so there is one stop to move. Our guide to trailing stops and breakeven explains when and how to move a stop.

Where TP1, TP2 and TP3 sit: medians from our record

Knowing where the targets usually sit helps you plan the partial closes. In the Forexuro signals study of 3,103 closed signals, the median targets are 0.34R, 0.67R and 1.00R from entry, where R is the distance from entry to the stop. In other words TP1 is about a third of the stop distance away, TP2 about two thirds, and TP3 about the same distance as the stop.

In pips, from the 3,108 signals in the public CSV with every level filled in (6 November 2023 to 28 October 2026):

Median distance from entry, computed by the Forexuro Desk from forexuro-signal-record.csv. One gold pip on this site is $0.10.

TP1 comes quickly, which is why it is the natural point to bank the first part and protect the entry. And the study shows that TP3 is where most winners end up: 1,686 of the 2,526 winning signals reached it.

Results are measured between published prices, before trading costs; past results do not guarantee future results.

Worked example: GBP/USD sell, 7 September 2026

On 7 September 2026 the desk sold GBP/USD at 1.3539, with a stop at 1.3609 and targets at 1.3519, 1.3488 and 1.3461. The record shows it ran to TP3 for +78 pips. Here it is as one FIFO position of 0.30 lots, a size picked only to keep the arithmetic simple. On GBP/USD a 0.10 lot is worth $1 per pip.

Every close took the oldest and only position, so FIFO made no difference to the outcome. Held in full to TP3, the same 0.30 lots would have made +$234, which is the figure the record credits as +78 pips. Results are measured between published prices, before trading costs; past results do not guarantee future results. The row is in the trade history, and the verify page shows how to check it against your own chart.

Which exit plan pays most in the study

One position can be managed in any of the ways the study tested, so FIFO leaves every option open. These are the four exit plans, each with the stop moved to entry after TP1:

Source: Forexuro signals study, 3,103 closed signals from 6 November 2023 to 26 October 2026. Results are measured between published prices, before trading costs; past results do not guarantee future results.

Holding to TP3 returned the most, more than four times the TP1-only plan, because so many winners go all the way. Closing a third at each target still returned +0.25R per trade and gives a steadier ride. In a US account each plan is just a different way of reducing one position.

Let the Telegram updates do the timing

You do not need to watch the chart to follow the method. In the free Forexuro Telegram channel the desk posts free signals every trading day, usually between about 05:00 and 15:00 UK time (midnight to 10:00am ET for most of the year), and an update each time a target is hit. Each update is the cue for the next partial close. VIP adds more signals and alerts, full live management on every trade and priority support on Lifetime, for £99 a month (about $132) or £549 once (about $734), charged in GBP via PayPal. Forexuro is not a broker and never holds client money. Signals are general and the same for every member.

For the wider US picture, including signal times in Eastern Time and the US data the desk trades around, see forex signals for US traders. Following our gold calls on COMEX futures is covered in gold signals for US traders, and big US releases such as the jobs report, CPI and the Fed decision each have their own guide. The GBP/USD weekly forecast and the market sessions clock help you plan the week, and the Forexuro review page lists everything you can check yourself.

Trading forex and gold carries a high risk of losing money.

Official sources

The rule text and guidance referred to in this article.

• NFA Compliance Rule 2-43: forex orders, including part (b) on first in, first out
• NFA Forex Transactions: Regulatory Guide
• 17 CFR 5.9: security deposits for retail forex

Frequently asked questions