FIFO – What is FIFO?

What is FIFO?

Definition of FIFO: FIFO stands for First in and First out. This is an accounting expression that defines the meeting for treating the products that take place in a line. In the trading, a dealer will utilize this rule to find the order closed that he closes for opening the positions. All the positions that are opened within a specific pair of currency are liquidated in a particular sequence according to which they were opened originally. The opposite of FIFO is LIFO which stands for Last in the First Out. In this meeting, all the positions will be handled depending on the clearance of the last product at first. FIFO is a method in most of the cases. LIFO is generally used in the computer programs in completing the operations.