TradeMax uses strict “First In, First Out” (FIFO) trade matching as a default. It also provides the function which enables the user to discard FIFO trade matching. It will help you to avoid changing your long-term investment to short-term one.
The following figure provides you step-to-step wizard of trade matching:
For example, if you buy HPQ 1000 shares on January 13, 2008, and 500 shares on January 14, 2008. Then sell 400 shares on February 12, 2008. You will see these transactions as records in the data grid like this:
Note: The TradeMatch function is available only if the trade’s action is closed. For example, in January 13, 2008, you sell HQP to close the position.
- Double-click on the cell under the column TradeMatch at far right of the row 434(refer to the picture above), or just right-click the 434 record and select the TradeMatch from its context menu.You will get the following popup box:
According to the “FIFO” rule, the share to sell must come from the transaction happened on January 13, 2008. But in this section, TradeMax provides you the “force-match” function using which you can sell the shares of stock bought on January 14, 2008.
- Enter the specific shares under the column Shares to sell in January 14, 2008 (In this example, we enter 400). Then click on the OK button to finish the process and you will see the TradeMatch amount in the data grid like this:
- You can cancel this action with the Undo Button in the trade tab.