Does FIFO still trigger day trading? (using Robinhood)

Question

I am using Robinhood and wondering how day trading is triggered and how first-in-first-out (FIFO) selling order works.
I bought GME stock yesterday and bought GME stock today. If I sell 1 GME share today, will it trigger day trading even though the GME stock that would be sold is technically the one I bought yesterday (because of FIFO)?

D Stanley · Answer

Day Trading rules and lot selection are completely independent. Robinhood spells out the rules pretty clearly:

When you buy and then sell the same stock or open and close the same options contract(s) within a single trading day, you’ve made a day trade.

FIFO and other lot selection rules are only for tax purposes to determine the cost basis for stocks that are sold. If you've bought and sold the same stock in one day (regardless of whether you already owned shares of the stock) it's considered a "day trade"

Does FIFO still trigger day trading? (using Robinhood)

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