We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We’re also a community of traders that support each other on our daily trading journey. These are institutional investors, including pension funds, endowments, insurance companies, mutual funds and those portfolio/investment managers whose clients are predominantly institutional. Despite not yet being available to the public, Gemini is reported to vastly outperform OpenAI’s GPT-4, as it utilizes greater computing power. Google’s VP and manager of Bard and Google Assistant, Sissie Hsiao, has previously lauded Gemini’s capabilities, particularly its ability to generate unique images based on prompts, interacting with people in both text and visuals. Access Weekly Commitments of Traders Reports, as well as trade analysis and recommendations for various markets, daily fundamental and technical market overviews, future price outlooks, and more through our Insider Market Advisory.

As a quick reminder and as mentioned earlier, as markets grow and more participants enter the markets, extreme positioning levels can be broken and new all-time levels are created. The same chart also has examples of broken historical positioning levels. 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. The COT Public Reporting Environment (PRE) provides an application programming interface (API) to allow users to customize their experience with the COT market report data.

Traders can use the report to help them determine which positions they should take in their trades, whether that’s a short or a long position. One thing the report does not do is categorize individual traders’ positions because of legal restraints. This is part of confidential business practices, according to the commission.

Commitments of Traders

Forex traders may use currency derivatives COT reports to find large net long or net short positions. The COT provides an overview of what the key market participants think and helps determine the likelihood of a trend continuing or coming to an end. If commercial and non-commercial long positions are both growing, for example, that is a bullish signal for the price of the underlying commodity. The report provides investors with up-to-date information on futures market operations and increases the transparency of these complex exchanges.

• As a result, a classic bullish set-up for a given market would be when large traders are net long and small traders are net short.
• The traders in this category mostly are using markets to hedge business risk, whether that risk is related to foreign exchange, equities or interest rates.
• Because of this, they like to look at the positioning data by CFTC as well as reports released by the Tokyo Financial Exchange.
• It can comprehend and generate both text and images, as well as other forms of content, based on a sketch or written summary.
• As the name suggests, this category represents large institutions and traders looking to speculate on different commodities and market instruments with the goal of making a profit on their speculative positions.

On this chart, you can see the net “non-commercial” (speculative) positions taken on by forex traders in the U.S. futures markets. Data in the COT report influences commitment of traders report forex – and is influenced by – the spot foreign exchange market. The category called “dealer/intermediary,” for instance, represents sell-side participants.

Traders tend to look at the seven major currencies (yen, euro, Swiss franc, sterling, Aussie, New Zealand, and Canadian dollars) both individually and as a whole. This article is for general information purposes only, not to be considered a recommendation or financial advice. Many traders and analysts use this tool and have developed custom indicators driven by COT.

Commitment of Traders Report

Bitcoin price crossed the $41,000 mark on Binance, in its ongoing uptrend. BTC price rally is likely driven by the anticipation of Spot Bitcoin ETF approval. Although it looks disorganized, searching through the report is relatively easy.

The Commitment of Traders COT Reports are based on data from the CFTC, including historical data, presented in an easy-to-read Excel Spreadsheet format. These reports provide a detailed look at market dynamics, helping retail traders gain a better understanding of the markets. Use them as an additional tool in your trading strategy, or find other ways that work best for you. It breaks down the open-interest positions of all major contracts that have more than 20 traders.

Every other reportable trader that is not placed into one of the other three categories is placed into the “other reportables” category. Open interest is the total of all futures and/or option contracts entered into and not yet offset by a transaction. The aggregate of all long open interest is equal to the aggregate of all short open interest. Open interest is the total of all futures and/or option contracts entered into and not yet offset by a transaction, by delivery, by exercise, etc. Traditional trading lore has it that the way to use COT data is to “follow the commercials.” In FX, this is not always the best advice. In addition to user-unfriendliness, the other big drawback to the COT report is that it is nearly a week late by the time you get the data.

Money Management

In other words, it is the trader who is classified as commercial or speculative, not the trade. This is why big players like Goldman Sachs applied for (and got) a commercial designation, even though it is obvious many of its trades are actually speculative. Those designated “commercial” can usually get higher leverage from their brokers. Each Friday, unless there is a holiday, the Commodity Futures Trading Commission, a US government agency (CFTC), releases what is called a Commitments of Traders Report (COT) on a wide array of currencies, commodities and interest rate futures. This reveals the size of outstanding positions for various players as of the preceding Tuesday. In the fast moving world of currency markets, it is extremely important for new traders to know the list of important forex news…

Current Legacy Reports:

It is used by many futures traders as a market signal on which to trade. A “money manager,” for the purpose of this report, is a registered commodity trading advisor (CTA); a registered commodity pool operator (CPO); or an unregistered fund identified by CFTC. These traders are engaged in managing and conducting organized futures trading on behalf of clients.

Those reports show the futures and option positions of traders that hold positions above specific reporting levels set by CFTC regulations. The aggregate of all traders’ positions reported to the Commission usually represents 70 to 90 percent of the total open interest in any given market. From time to time, the Commission will raise or lower the reporting levels in specific markets to strike a balance between collecting sufficient information to oversee the markets and minimizing the reporting burden on the futures industry. Information that is included in the report is compiled on Tuesday and verified on Wednesday before being released every Friday. The report is intended to help people understand the dynamics of the market.

One of the main problems that traders face when using various trading tools is that many indicators are based on price data, and therefore, in many cases, the different indicators end up duplicating the same message. Therefore, traders always look for different types of indicators to incorporate into their strategies. 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.