Commitment of traders report COT:

forex market
commodity and futures

We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Remember, since spot forex is traded over-the-counter , transactions do not pass through a centralized exchange like the Chicago Mercantile Exchange.

Commitments of Traders (COT) Charts – Barchart

Commitments of Traders (COT) Charts.

Posted: Tue, 01 Nov 2016 19:33:38 GMT [source]

You’d have to go all the way back to 2002 to find data points representing the EUR/USD conversion rate that start with a zero to the left of the decimal point. Gold Rush Friday – A simple yet effective strategyOne of the relatively stable patterns in the gold market is the so-called… We offer the chance to follow the COT strategy in a real money trade and to learn from it. If you are interested and would like to find out more, you see our performance by clicking here. On the Figure 6 we see that the price reached the new lows even before the COT-signal occurred.

How to read a Commitments of Traders report

It is used by many futures traders as a market signal on which to trade. The Commitments of Traders, or COT, report is a weekly publication that shows the aggregate holdings of different participants in the US futures market. It provides a snapshot of trading commitments as of Tuesday of that week in order to increase the transparency of exchanges. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice.

You hereby waive the benefit of Swiss banking secrecy in this respect towards the above mentioned persons and entities. Confidentiality of your personal data will be ensured throughout the group, regardless of the location of specific group units. Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction.

The key thing here is for investors and traders to believe in their analysis and their opinions. The market reaction was severe to most investors who had traded the Swiss dominated currencies. Therefore, the key to success when using the COT model is to understand when the extremes have been reached and then make the entry or exit decision. Therefore, as a trader, you can use this information to determine whether to buy or sell an asset. 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.

For one of the reports, Traders in Financial Futures, traders are classified in the same category for all commodities. The commitment of traders report shows how large speculators are positioned across futures markets on the CME exchange. The commitment of Traders report is a weekly publication released every Friday on aggregate positions held in the futures market. These positions are reported to and compiled by the CFTC and you can see how many long and short positions make up the open interest.

Commitments of Traders

The usefulness of following commercial accounts is that at times, they unintentionally apply such pressure on prices, that tend to be the force initiating and signaling potential reversal points in the market. What’s more, commercials are particularly knowledgeable about their industries, therefore, are best placed to possess the highest level of insider information in the potential future directions of a particular asset. 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 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. The larger the net short position of the small trader and the extent that small traders are holding a position “against” the trend are factors which will add to the bullishness of the report.

This allows us to better understand what other traders are doing, therefore, predicting what the current market situation/sentiment is. Market direction is a result of the overall opinion of all its participants. This total assessment, some average feeling of the market that weighed on the value of positions is called a market sentiment, and the market will move in the direction where sentiment points it to go. As a reader of TWIG, I hope you have come to understand my major objective to inspire ideas so you can hedge or trade these grains markets on your terms. Lately, I have been asked by producers why it would make sense to re-own.


While the volumes seen in futures are just a drop in the bucket in the $7.5 trillion per day traded in spot foreign exchange, the COT report offers rare insight into positioning. If X percent of traders hold a long in a currency on the Chicago Mercantile Exchange , then logic follows that those in the spot market may have a similar position. If positions become extended on the CME, then it is likely that positions are extended in the trading community as a whole.

Moreover, managed funds do not appear to have reached a sentiment extreme, so perhaps gold can make a daily close above $2,000 should it retain its safe-haven status amidst the current concerns of a banking and liquidity crisis. Traders were quick to offload their exposure to the Canadian dollar following the BOC’s dovish pause. Traders have actually been net-short the currency since late September, but had increased both long and short exposure to 6-year highs ahead of the meeting .

What kind of trader are you?

The long version of a 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. When graphically shown on charts, you actually see what is referred to as the Net Traders Positions which is the actual difference between the number of long positions held by each group minus the number of short positions. Thus a positive number means they hold more long positions than short and vice versa. 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.

It is then unpacked into reportable open interest positions for non-commercial and commercial traders . The weekly report details trader positions in most of the futures contract markets in the United States. Noncommercial traders are speculators, such as individual traders, hedge funds and large institutions, which operate on the futures market and meet the reporting requirements. Mid-September, the net short positions of the pair went to a 1-low. Afterwards, investors went bullish as the non-commercial traders started buying the pair.


The financial market is usually very regulated, something very important to protect the retail traders. The regulators in the US include the Securities and Exchange Commission , Commodities Futures Trading Commission , and the Federal Trading Commission among others. “Current delivery” refers to futures contracts for which physical delivery of the underlying commodity will occur in the current month, or soon after. A small trader has buying or trading activities that are below the required reporting thresholds specified by the relevant exchange or commission. There have been recommendations to publish more detailed data on a delay as not to affect commercially sensitive positions, but that still looks unlikely. And, despite its limitations, most traders agree that even the questionable data of the COT is better than nothing.

forex traders

Thus, EUR/USD, AUD/USD, GBP/USD, and the like can be traded with the help of COT reports. This report breaks down the reportable open interest by non-commercial traders and commercial traders. A commercial trader trades on behalf of a business or institution. COT reports are based on position data supplied by reporting firms .

How to trade with City Index

Large speculators increased net-long exposure for a third week to a 7-week high, but managed funds saw a notable drop in gross short exposure and increase of gross longs over the past two weeks. As part of the classification of traders, there are certain types, most notoriously, the large specs and the commercial accounts, that due to their business purpose, will provide the most insights. Other types of traders that will also reveal snippets of valuable information, and as I like to make the analogy, also leave a trail of breadcrumbs along the way, include leverage funds, asset managers, and dealers. A classic bearish set-up in the market exists if large traders are holding a net short position with small traders net long the market . One exception we have noted recently is the ability of the small trader in T-bonds to hit the correct direction of the market. It is also important that the COT report with futures and options confirm the situation that is indicated by the futures only report.


Introducing the Trading Journal, the ultimate tool for traders of all levels. For beginners, it’s an excellent way to get started on the right foot by providing a detailed analysis of your trading history and identifying patterns and areas for improvement. Advanced traders can use it to fine-tune their strategies and make better trades by having a complete overview of their performance. One especially popular such tool is the COT Indicator Suite for MetaTrader that you can obtain from the developer’s website at This useful indicator suite shows three indicator sets corresponding to the Legacy, TiFF and Disaggregated report types, with new data points plotted each week as the COT reports are released.

More risky traders look at the COT and look for ways to go against the grain. There is a high risk when you are betting against the position taken by a large part of the market. That is why most traders interested in doing this hedge their bets by opening positions in uncorrelated pairs. Its significance lies in the fact that it gives a unique look into what are traders doing all across the market. And, knowing where most Forex players are standing when creating a trading strategy. The smart money doesn’t tend to alter positions that frequently, hence a 3-day delay in reporting the data does not make the information irrelevant.


commitment of traders report forex are their least bullish on WTI futures since January 2016. Gross short exposure spiked higher by 37.4k contracts last week (and 29.4k the week prior) which takes gross-short exposure to its most bearish level since October 2019. It’s worth noting that managed funds have not been net-short WTI since the depths of the 2008 financial crisis, and according to record have remained net-long ever since. So there is a case to be built that perhaps we are approaching a sentiment extreme, as is the case that OPEC do not want prices to drop below $60. Perhaps not too surprisingly, traders have become increasingly bullish on gold futures.

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