FIFO

FIFO means the oldest buys are consumed first on a sale — impact on realized P&L and tax views.

FIFO (First In, First Out) matches a sale to the oldest purchase lots. Shares bought earliest leave first.

Realized P&L = sale proceeds minus cost of consumed lots minus relevant fees. Lot order therefore changes which purchase hits P&L first.

In Czechia FIFO can also interact with holding period (time test) — it depends which lots a sale closes. Always verify current tax rules; this is not tax advice.