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FIFO
tv-trainer uses a mock FIFO method for filling and placing trades. Simply put, this means trades will look like this:
5 AAPL @ $100
The above trade represents the buying of 5 AAPL shares at the price of $100.
-5 AAPL @ $200
The above trade represents the selling of 5 AAPL shares at the price of $200.
With FIFO, one may place for example, 10 AAPL @ $100
and another trade of -5 AAPL @ $200
. Using FIFO, the trader will make a profit of 100% on the 5 sold shares, while still owning the remaining 5 shares. If the trader wishes to close the position entirely, they can submit an additional order of -5 AAPL @ $100
.
The same concept applies to short orders. A trader may also reverse their position, for example if a trader is short -10 AAPL $100
they can go long by submitting an order of 20 AAPL @ $100
. This will simultaneously close the short and create a long position of 10 AAPL @ $100
.