The original version of the COT reports can be found on the CFTC website. Browse through all categories of COT Reports, including Simplified, Detailed, Weekly Summary, and COT Data Charts.

Commitments of Traders

Standalone long and short positions in their self do not give many insights about the overall positioning of a market participant. That gives a much clearer view on the overall positioning in that market. The comparison of the net positions is giving us the first understanding of the overall situation. You can get the chart and historical comparison on each market on the overview table.

Prediction of Market Reversals

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. You should only trade in these products if you fully understand the risks involved and can afford to incur losses.

1. The Commitment of Traders COT Reports provide insights into the positions of traders in different markets including Forex financial markets, Metals (Gold, Silver), Cryptocurrencies (Bitcoin), Stocks, Indices, and more.
2. In general, the data is presented in tables, COT graphs, charts, and COT charts to make analysis easier for traders.
3. This means that an oil company with a small hedge and a much larger speculative trade on crude will have both positions show up in the commercial category.
4. The reports are read as tables, which each row and column labeled appropriately (see the example above).
5. Currency pairs can linger at extreme levels for prolonged durations, and a reversal might not manifest immediately.

For example, an importer commitment of traders report forex based in Japan buys a futures contract to offset the risk of a future import (the risk is a strong US Dollar against the Japanese Yen). Short Noncommercial Positioning represents the short open interest of noncommercial traders. Discrepancies may arise among brokers’ sentiment readings, with smaller brokers potentially providing less representative data compared to larger counterparts, who serve a broader client base. Many brokers offer sentiment tools on their platforms for free, though it’s prudent to cross-reference multiple brokers for consistency in sentiment readings. Consensus among brokers indicating extreme sentiment levels often signals an impending reversal. Banks or corporations who are looking toprotect themselves against sudden price changes in currencies or other assetsare also considered commercial traders.

Open Interest Data

The report is intended to help people understand the dynamics of the market. Commodity Futures Trading Commission, « each Tuesday’s open interest for futures and options on futures markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. » The Commitments of Traders (COT) is an important report issued by the CFTC that shows the aggregated long and short positions in the futures market regarding all major asset classes including Forex currency pairs.

Ritika Tiwari is a freelance content writer and strategist at Blueberry, specializing in forex, CFDs, stock markets, and cryptocurrencies. She has over 10 years of experience building content for FinTech and SaaS B2B brands. Before we dive into how to use the Commitment of Traders report as a forex trader, you have to first know WHERE to go to get the COT report and HOW to read it.

By studying the positions of commercial and non-commercial traders, traders can gain insights that enhance their market analysis. When used alongside technical and fundamental analysis, the COT report helps traders make more informed decisions, enabling them to navigate the complexities of the markets more effectively. The COT reports provide a breakdown of each Tuesday’s open interest for futures and options on futures markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. The Commitments of Traders (COT) report is a market report, which is published weekly by the CFTC (Commodity Futures Trading Commission).

1. For instance, if a currency pair historically reverses when buying reaches 75%, observing the same level of long positions suggests the pair is at an extreme, warranting vigilance for signs of a reversal.
2. The long report, in addition to the information in the short report, groups the data by crop year, where appropriate, and shows the concentration of positions held by the largest four and eight traders.
3. The Dealers may not mainly sell futures, but they design and sell different financial assets to their customers.
4. In general, the large speculator category represents fund traders and professional traders who carry large positions.
5. Most trades are made in round lots (100 shares), but retailtraders can trade any number of shares at a time.
6. Agricultural producers or farmers whowant to hedge (minimize) their risk in changing commodity prices are part ofthis group.

These represent transparency and create a solid foundation for developing effective strategies. With InsiderWeek, you can learn to read the COT report properly and use a COT report trading strategy to achieve your trading goals. The market will be in a weakened bullish set-up “if” the two-week trend in the large trader position is down, or in other words, if the funds are in the process of liquidating their net long position.

Commodity COT Data

In the over-the-counter forex market, transparency is fostered through brokers who disclose the collective percentage of traders or trades holding long or short positions in specific currency pairs. However, this data reflects only the clientele of each broker, offering a limited perspective on market sentiment. To use the COT report & charts for your own trading, you must analyze the net positioning of the different market participants as well as the long and short extremes on a specific period (36 or 6 months). For deeper insights you can use our free Cot index, which puts the net positions in perspective to the extremes of the period.

In currency futures, the big banks that are putting central bank money into circulation, can be seen as commercials. Specifically, the COT reports provide abreakdown of each Tuesday’s open interest for futures and options on futuresmarkets in which 20 or more traders hold positions equal to or above thereporting levels established by the CFTC. The process of forex sentiment analysis entails scrutinizing an array of indicators and published reports to ascertain the prevailing bullish or bearish sentiment among traders toward a particular currency pairing. Additionally, staying abreast of significant news releases and economic data disclosures proves instrumental in deciphering market sentiment, as these factors exert notable influence on currency pairs.