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Wash sales are prohibited under Section 4c of the Commodity Exchange Act.That is covered in the Traders Tax Plan This FAQ is a fast and easy way to get answers to general questions, many of which are so often misrepresented over the internet A method of identifying specific shares of securities to be sold for tax purposes--also called "vs.purchase." If versus purchase is not specifically stated at the time of sale, the IRS deems the securities sold are made on a first-in first-out (FIFO) basis.See: The sale of a security at a loss and the purchase of shares within 30 days while continuing to hold either a long or short open position in the security.We have placed this detail over and above all of our other terms because it is the most important (although it is also referenced below).