Per IRS regulations, TradeLog uses "First-In, First-Out" (FIFO) trade matching. The first imported trade transaction is assigned a Trade Number (TrNum) 1. If the second imported transaction has the same ticker description, it is matched to the first imported trade, and given the same Trade Number. If the third imported transaction has a different ticker description, it is assigned the next Trade Number (2). When a transaction is long, the subsequent sells are matched to the buys. When a trade is short, the subsequent buys are matched to the sells. For a discussion of how TradeLog assigns trade numbers, please see our User Guide item How TradeLog Works.