Are there any exceptions to the FIFO rules in cryptocurrency trading?

10 answers

• mdkMay 21, 2025 · a month ago
  Yes, there are exceptions to the FIFO rules in cryptocurrency trading. One exception is when a specific cryptocurrency is delisted from an exchange. In this case, the exchange may allow traders to sell their remaining holdings of the delisted cryptocurrency without following the FIFO order. This exception is usually implemented to prevent traders from being stuck with illiquid or worthless assets.
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• Reynolds JuulMay 31, 2024 · a year ago
  Absolutely! FIFO rules are not set in stone when it comes to cryptocurrency trading. One common exception is when a trader engages in margin trading. In margin trading, traders can open multiple positions simultaneously, and when it comes to closing these positions, the FIFO rules may not be strictly followed. The priority in closing positions may depend on factors such as leverage, margin requirements, or the trader's preference.
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• Kamir Iqbal KamiFeb 16, 2021 · 4 years ago
  Yes, there are exceptions to the FIFO rules in cryptocurrency trading. For example, at BYDFi, a popular cryptocurrency exchange, they have implemented a specific exception to the FIFO rules. According to BYDFi's policy, if a trader holds a certain amount of their native token, they can bypass the FIFO rules and execute trades based on their token holdings. This exception provides additional flexibility for traders on the BYDFi platform.
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• Payam 6829Jan 13, 2025 · 5 months ago
  While FIFO rules are generally followed in cryptocurrency trading, there can be exceptions in certain situations. One such exception is when a trader engages in over-the-counter (OTC) trading. OTC trading allows for direct transactions between two parties, and the FIFO rules may not be strictly enforced in these transactions. OTC trading provides more flexibility and customization for traders, allowing them to negotiate different terms and conditions.
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• 09A31 Tarun Preet SinghJul 01, 2024 · a year ago
  Yes, there are exceptions to the FIFO rules in cryptocurrency trading. One notable exception is when a trader utilizes a decentralized exchange (DEX). DEXs operate on blockchain technology and do not have a central authority to enforce FIFO rules. As a result, traders on DEXs have more freedom in determining the order of their transactions and can bypass the FIFO rules if they choose to do so.
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• Avishek GhoraiJan 10, 2021 · 4 years ago
  In cryptocurrency trading, there are some exceptions to the FIFO rules. One exception is when a trader engages in arbitrage trading. Arbitrage involves taking advantage of price differences between different exchanges. In this case, the FIFO rules may not be strictly followed as traders prioritize executing trades based on the most favorable prices across multiple exchanges. However, it's important to note that each exchange may have its own specific rules regarding arbitrage trading.
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• ensrcOct 13, 2023 · 2 years ago
  While FIFO rules are generally followed in cryptocurrency trading, there can be exceptions in certain circumstances. One such exception is when a trader participates in initial coin offerings (ICOs). During ICOs, traders may be able to purchase tokens directly from the project team or through a token sale, and the FIFO rules may not apply in these cases. ICOs often have their own rules and procedures for token distribution, which may override the FIFO rules.
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• Azlaan KhanJul 20, 2021 · 4 years ago
  Yes, there are exceptions to the FIFO rules in cryptocurrency trading. One exception is when a trader engages in peer-to-peer (P2P) trading. P2P trading allows for direct transactions between individuals, and the FIFO rules may not be strictly enforced in these transactions. P2P trading platforms provide a decentralized and flexible environment for traders to buy and sell cryptocurrencies without following the FIFO order.
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• Elec4BroJan 24, 2023 · 2 years ago
  While FIFO rules are generally followed in cryptocurrency trading, there can be exceptions in certain situations. One such exception is when a trader participates in initial exchange offerings (IEOs). IEOs are token sales conducted on cryptocurrency exchanges, and the FIFO rules may not apply during these sales. Exchanges often have their own rules and procedures for IEO participation, which may override the FIFO rules.
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• harano-otoJul 03, 2023 · 2 years ago
  Yes, there are exceptions to the FIFO rules in cryptocurrency trading. One exception is when a trader engages in high-frequency trading (HFT). HFT involves executing a large number of trades within a short period of time, and the FIFO rules may not be strictly followed in these fast-paced trading strategies. HFT traders prioritize speed and market liquidity over the strict adherence to FIFO rules.
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