futures and options

Analytical reviews and forecasts are published on a daily basis so that you do not trade blindfolded but have a significant layer of information at hand. Trading Leveraged Products like Forex and Derivatives might not be suitable for all investors as they carry a high degree of risk to your capital. Please make sure that you fully understand the risks involved, taking into consideration your investment objectives and level of experience, before trading, and if necessary, seek independent advice.


The term “commercials” refers to market participants who operate on the futures markets primarily for hedging purposes. They are typically manufacturing or processing companies that wish to hedge against price fluctuations on the futures market in order to avoid dependence on commodity prices. They want to protect themselves by opening positions against price expectations. Another excellent tool, is the Commitment of Traders Analysis from DailyFX.

Non-reportables are those market participants who are not subject to reporting requirements, in other words, they are “small traders like you and me”. However, they could also be trading companies , which do not exceed the defined limits on traded contracts. The Commitments of Traders, or COT, report is a weekly publication that shows the aggregate holdings of different participants in the US futures market.

What groups of market participants can we find in the COT report?

That said, it does have its critics and their issues with the report are justified. The biggest weakness with the COT is that, for a document meant to promote transparency, the rules governing it are not transparent. 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.

Market update: Dow consolidates again despite hotter pricing data last week – ig.com

Market update: Dow consolidates again despite hotter pricing data last week.

Posted: Sun, 19 Feb 2023 08:00:00 GMT [source]

https://forexanalytics.info/ your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. Trade feed excludes Explorers that are set to private or traded by a commercial member. We have seen a steady decline of short bets against the yen since October, as trade increasingly suspect the BOJ are moving away from their ultra-loose policy. With the BOJ governor Kuroda set to hand over the reigns and hold his last meeting in March, it’s possible we may see the central bank abandon YCC and / or negative interest rates. Yet whist gross shorts are now at a 22-month low, we’re yet to see a notable pickup of new long bets.

COT reports are used across markets, so you’ll be able to obtain reports on forex, gold, indices and more. Are you looking to advance your trading career and become a funded trader? Check out my top-rated proprietary trading firms of 2023 and apply to trade with them.

These categories include non-https://forexhistory.info/, commercial, and index traders. COT Public Reporting EnvironmentThe COT Public Reporting Environment provides an application programming interface to allow users to customize their experience with the COT market report data. The API allows users to search and filter across columns for each of the datasets, including reporting date or week, commodity groups, subgroups, or name, and contract market name. Customized data report results can be downloaded to available formats — CSV, RDF, RSS, TSV, or XML. The CFTC releases the weekly COT reports in static format to support the historical usage patterns of industry professionals viewing and accessing each week’s data.

Another advantage of this strategy is the low effort for it’s preparation and implementation. On the weekend we analyse the markets, identify the COT-signals and choose the best set ups. During the week, we only have to place the orders and adjust it if required. It is possible that all your trades will be completed until Tuesday, meaning no extra work until the beginning of the next cycle. Thus, this strategy ideally suits for part-time traders and full time employees.


For example, corporations who require raw materials for the production of goods. To these companies it is viewed as a form of insurance against adverse price fluctuations and allows for a means of price stabilization of key inputs which impact the cost of production. It can also apply to financial instruments, such as interest rate contracts; where for example, a bank might want to hedge against fluctuations in interest rates. This allows us to better understand what other traders are doing, therefore, predicting what the current market situation/sentiment is.

We prefer this strategy because it meets all the criteria of a good strategy – it is fundamental, comprehensible, time-saving, suitable for small accounts and it is easy to implement. As soon as the entry, exit and risk per trade are defined, we move on to the next step. The short signal is provided when the mood of the public is positive . COT-signal can be verified by the sentiment that represent the the mood of the public .

When the new signal comes, after the closing, the number of bars between the… The data on this page is sourced from traders using Forex Factory’s Trade Explorer, a web-based interface that empowers traders to intelligently analyze their trading performance. However, the original COT reports are text based and the CFTC does not provide any data analytics tools.

These traders often look to buy when prices are rising and sell when prices are falling. In this article you can learn how to analyze the COT data, a weekly released report with a breakdown of aggregate positions held by three different types of Forex traders. These can be individuals, proprietary trading firms, small hedge funds, and anyone who establishes small position sizes for speculative purposes. This group has grown over the years with the advent of technology and access to the market electronically. Market direction is a result of the overall opinion of all its participants.

Where Do You Find a COT Report?

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

MotivatedWith our assistance and your motivation you will become a true professional in futures and commodities trading. Gold Rush Friday – A simple yet effective strategyOne of the relatively stable patterns in the gold market is the so-called… Are you an experienced FOREX trader looking for additional information… The Pro Trader subscription gives you access to all the trades we execute on the StartUp account. Notice that the Red bars are all pointing down, which indicates that the Commercials are all selling, or going short. Notice that the Blue bars are all facing up, which means the Large Speculators are buying, going long in the market.

Commitments of Traders (COT)

If you want to achieve success in trading, you definitely need high-quality analytics. Unfortunately, experience has proven that not every trader is able to analyze the market situation. The Forex Analysis section contains reviews of experts who research various financial events and have a wealth of experience in Forex trading.

  • This means you can invest your money and expect to get a bigger yield in the 3-month bond than the 10-year bond.
  • The commitment of traders report shows how large speculators are positioned across futures markets on the CME exchange.
  • The main drawback and criticism to the COT is that it is published three days late.
  • As noted earlier, due to the infrequency and delay in reporting, the COT report is best used as an intermediate to long-term sentiment indicator.
  • COT reports are based on position data supplied by reporting firms .

The COT report can serve as a powerful forex volume indicator when you use it rightly. Since CFTC releases the weekly report every Friday for all trades recorded before Tuesday, you can only use it for long-term trades. So, it is difficult to accurately track the volumes behind all forex trades. It is also harder to know what the big banks, the large speculators, and other market drivers, are doing.

The COT reports are based on position data supplied by reporting firms . CFTC staff does not know specific reasons for traders’ positions and hence this information does not factor in determining trader classifications. Note that traders are able to report business purpose by commodity and, therefore, can have different classifications in the COT reports for different commodities.

The first place to start with is a clean understanding of ‘net positioning’ which is shown clearly on the report itself, as well as the week over week differential of major market bias . Thus a positive number means they hold more long positions than short and vice versa. Instead, use it in combination with your technical analysis tools to help you get the best out of it. As we always say, never rely on one tool or indicator to decide your trades. Rather, let your tools come together to give you a trading signal. But if you need details on past data, check the historical data section of the CFTC website.

Spot Gold and Silver contracts are not subject to regulation under the U.S. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries.

trading strategy

This is a long https://day-trading.info//investment type of strategy designed to have a good idea about where the big trend direction is headed. Its logic, its made entirely on the COT report, mainly from looking into the net non comercial positions aka the speculators. For bullish trend we look that the difference between long non comercial vs short non comercial is higher than… – This data most often relates to large speculators such as Commodity Trading Advisors and similarly large institutions speculating in specific futures markets. For example, a major commodity fund believes that the US Dollar will appreciate against the Euro and, as such, place bets on Euro forex futures.

CoT Charts

As there is no volume data available in spot forex trading because there is no centralized exchange to gather data. Professional traders have instead used the Commitment of Traders Report as a substitute for estimating forex trade positioning and price trends. They are best used to identify broader conditions which may be more or less conducive for price to move in a particular direction. According to our experience, you will require an account of at least $ 15,000 (better $ 30,000) in order to trade based on the COT-strategy. The disadvantage of a smaller account of $ 15,000 is that you can not trade each market set up. Otherwise your risk may be too high or you have to choose just one of many markets.

It is also hard to dig for and extract historical data on past positions to bring context to one’s research. We previously looked at using the COT report in FX trading, in this article, we take more of a big-picture perspective on this very important sentiment report. Unfortunately, CFTC reports are extremely hard to read and interpret, therefore, this tool can be a great way to simplify the reported numbers. By watching the behavior of these players, you’ll be able to foresee incoming changes in market sentiment.

commercial trader

In his insightful COT Book , Stephen Briese shows examples and analysis that the small traders sometimes trade like the speculators while other times they trade like the commercials. In the end, it is harder to place a distinct trading motive on these traders. However, in reality, this group often contains a mix of small commercials and small speculators as well as retail traders. The CFTC confirms the opaqueness of this group saying of the non-reportables, “the commercial/non-commercial classification of each trader are unknown”.