What Is the FIFO in Futures Trading?
All KGI Crusoe order entry interfaces maintain FIFO (First In, First Out) order with the exchanges whenever possible.
Published
Topic
Orders & Positions
All KGI Crusoe order entry interfaces maintain FIFO (First In, First Out) order with the exchanges whenever possible.
Table of Contents
What is FIFO and Why Is It Important?
How Does KGI Crusoe Preserve FIFO?
Exceptions to FIFO
What is FIFO and Why Is It Important?
FIFO (First In, First Out) is crucial for live orders because order fills are determined by the sequence in which they are received by the exchange at a given price level.
In simple terms, orders submitted to the exchange before yours at the same price will be filled first, much like standing in line at a grocery store, where you're served only after those ahead of you.
KGI Crusoe helps preserve your position in this queue whenever possible, giving you the best possible chance of having your orders filled promptly.
How Does KGI Crusoe Preserve FIFO?
All KGI Crusoe order entry interfaces are designed to simplify order visualization while preserving your position in the queue.
For example, suppose you submit a Buy Limit order for 1 contract and then decide to increase it to 2 contracts. Some trading platforms would cancel the original order and replace it with a new one for 2 contracts. Although this may appear as a simple change, it actually removes your order from its original place in the queue and places the new order at the back, just like stepping out of a grocery line to grab an item and returning to find yourself back at the end.
KGI Crusoe handles this differently to protect your FIFO (First In, First Out) status using the following methods:
When increasing order size:
Instead of replacing the original order, KGI Crusoe submits additional orders for any extra contracts. This means your original order keeps its place in the queue, and only the new contract is placed at the back.
Visually, the platform consolidates these into a single displayed order for simplicity.
When decreasing order size:
KGI Crusoe cancels the most recent order(s) first. This ensures that the oldest order remains active, maintaining your original queue position.
Exceptions To FIFO
KGI Crusoe will attempt to maintain FIFO (First In, First Out) order handling whenever possible, but there are certain scenarios where this may not be feasible.
Non-Aggregated Order Displays
Most of the KGI Crusoe platform's order interfaces, such as the Order Ticket, the SuperDOM and trading from a chart, use aggregated order displays, which group and manage orders at the same price level to support FIFO optimization.
However, some order displays are non-aggregated and do not support this. In those cases:
Modifying an order results in a direct cancel/replace action.
This removes the original order from the queue and places the modified order at the back, losing its original FIFO position.
Best Practice
If maintaining FIFO status is important to your trading strategy, it’s recommended to make order modifications through interfaces with aggregated displays rather than directly from non-aggregated grids like the Orders Tab. This approach helps preserve your position in the execution queue.
Quantity Modification for Stocks in KGI Crusoe
KGI Crusoe provides flexibility in how stock order modifications are handled through a setting called "Quantity modification for stocks", accessible by:
Right-clicking the Order Entry interface
Selecting Properties
Choosing one of the following options:
1. Increase quantity of preexisting order
Modifies the order with the least time in the market using a cancel/replace operation.
FIFO optimization is lost, as the order is removed from the queue and replaced.
Recommended if your stock brokerage charges commission per share, to avoid extra fees from placing additional orders.
2. Submit new order for additional quantity
KGI Crusoe submits a new order for the additional quantity.
FIFO optimization is preserved, as the original order remains in its position.
May result in multiple commission charges if your brokerage charges per order.
Important Notes
Please note this does not apply to KGI Crusoe accounts, only 3rd-party brokerage accounts that support stock (equities) trading.
Futures, Forex, and CFDs, KGI Crusoe always applies FIFO optimization on aggregated orders, regardless of modification type.
KGI Crusoe does not support LIFO (Last In, First Out), HIFO (Highest In, First Out), LOFO (Lowest In, First Out), or Specific Lot order handling.