The reports are read as tables, which each row and column labeled appropriately https://www.alexforbes.com/ (see the example above). The information in the report indicates how much interest there is, both long and short, in various derivatives contracts, and which type of market actor is involved. The long and short open interest shown as "Nonreportable Positions" is derived by subtracting total long and short "Reportable Positions" from the total open interest. Accordingly, for "Nonreportable Positions," the number of traders involved and the commercial/non-commercial classification of each trader are unknown. The spread number needs to be added to be both long and short sides, respectively. If you are doing these calculations on the Combined file, the sum of the long and or short positions may be +1 or -1 Open Interest, due to option delta calculations.

Trading Guides

The overall https://www.coronation.com/ net position of the non-commercial traders can be a big clue as to where the markets are going. It is a core data source for traders and for most academic research on pricing trends in the futures market. That said, it does have its critics and their issues with the report are justified.

• The Commodity Futures Trading Commission (CFTC) sets specific thresholds for reporting positions.
• Several financial websites and publications offer case studies and analyses based on COT data.
• When used properly, the COT report can give you valuable insights into what is going on in the markets.

How Do You Read a COT Report?

Individual traders began exchanging market-sensitive information on auctions by the UK’s Debt Management Office, the subsequent buying and selling of gilts and gilt asset swaps and on BoE auctions, the CMA found. The banks’ traders shared competitively sensitive information that was relevant to the pricing of UK bonds, known as gilts, in one-to-one exchanges in Bloomberg chatrooms, the CMA said. Four banks have been fined more than £100 million after traders shared sensitive information with each other about the British Government debt they were buying and selling. Margin trading involves a high sasol stock level of risk and is not suitable for everyone. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Blueberry Markets, and seek independent advice if necessary. Margin Forex and CFDs are highly leveraged products, which means both gains and losses are magnified.

Types of COT Reports

They are buying or selling only to speculate that they will exit their position at a profit, and plan to close their long or short position before the contract becomes due. In most of these markets the majority of the open interest in these "speculator" positions are held by traders whose positions are large enough to meet reporting requirements. The Commercial Traders Classification contains the Hedgers of the markets. All positions of a trader that is listed by the CFTC is categorized as a commercial traders position when the holding purpose is hedging. Typical commercial traders are manufacturers/ producers that are holding positions for their business purpose.

Open Interest Data

The COT report can be employed to confirm or challenge existing analyses derived from technical indicators or fundamental data. For instance, if technical analysis suggests a potential uptrend, a rise in net long positions by commercials in the trader’s COT report would strengthen this bullish outlook. The Commodity Futures Trading Commission (CFTC) sets specific thresholds for reporting positions. These thresholds vary depending on the commodity being traded and are designed to https://deriv.com/ capture the activity of the major players in the market. These are like minimum requirements for a trader’s holdings to be included in the Commitments of Traders report.

One theory is that "small speculators" are generally wrong and that the best position is contrary to the net non-reportable position. Another theory is that commercial traders understand their market the best and taking their position has a better chance of profit (which is sasol fuel pretty much the same thing as the "small speculators" being wrong). It is released every Tuesday and shows the open futures and options trading positions of traders that fall into certain classifications. Short positions represent contracts that traders have sold, anticipating that the price of the asset will fall. Short interest is important because it can indicate the level of pessimism in the market. The COT report categorizes traders into groups like commercials (hedgers) and non-commercials (speculators).

Short Positions

Look at the little Green guys, they are the Small Speculators, guys like you and me, who are also going short, or selling, that’s why their bars are all facing down too. RBC received the largest fine at 34.2 million pounds, followed by Morgan Stanley (29.7 million pounds) and HSBC (23.4 million pounds). All three banks were given a 10% reduction for settling after the CMA’s Statement of Objections.