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. PipPenguin.com remains dedicated to fostering a supportive trading community where traders can share experiences and insights while honing their skills. This new guide is a valuable addition to their repertoire of educational resources, ensuring that traders are well-equipped to thrive in the dynamic world of forex trading. Notice how the non-commercial’s long positions increased by 2100 while their shorts reduced by 20.

The Commitments of Traders (COT) reports can sometimes give traders a good idea of future significant moves in the market. The CFTC requires large speculators and commercial traders, or hedgers, to report their net positions twice each month. In general, the large speculator category represents fund traders and professional traders who carry large positions. The number “non-reportable” positions is derived from subtracting the number of large spec and commercial positions from the total open interest.

Forex commitment of traders reports are based on the corresponding futures contracts traded on the Chicago Mercantile Exchange. The Open Interest represents the total number of contracts, including both buy and sell positions, outstanding between all market participants. That is, the total of all futures and/or option contracts entered into and not yet offset by a transaction, by delivery, by exercise, and so on.

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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. 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 long and short open interest shown as “Nonreportable Positions” is derived by subtracting total long and short “Reportable Positions” from the total open interest.

Market Data & Economic Analysis

The disaggregated COT report is, in part, a response to some of the criticism of the legacy COT. The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S. Instead, use it in combination with your technical analysis tools to help you get the best out of it. With these general definitions in mind, traders can then decide how to use this information. The image below depicts an extract from the COT report with the three main groups as outlined above. Notice that the Red bars are all pointing down, which indicates that the Commercials are all selling, or going short.

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THE COMMITMENT OF TRADERS FINANCIAL FUTURES (TFF) REPORT

This report shows a breakdown of open interest positions in three different categories. These categories include non-commercial, commercial, and index traders. Because the COT measures the net long and short positions taken by speculative traders and commercial traders, it is a great resource to gauge how heavily these market players are positioned in the market.

• Simply put, even the disaggregated data is too aggregated to be said to accurately represent the market.
• Long-call and short-put open interest are converted to long futures-equivalent open interest.
• As retail forex traders, our best bet is to trade like big financial institutions.
• 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.

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How Do You Read a COT Report?

The purple area is the Daily December Futures contract subtracted by the current price. The blue area is the Daily September futures contract subtracted by the current price. The green area is the Daily June futures contract subtracted by the current price.

Commodity Futures Trading Commission (CFTC) and the ICE Exchange Europe for Brent crude oil and gas oil. They are released every Friday after the U.S. close with data from the week ending the previous Tuesday. They break down the open interest in futures markets into different groups of users depending on the asset class. It is a report that contains a weekly overview of how participants of the futures markets in the U.S. have traded. The report contains all the positions of the main market factors in the United States. The supplemental report is the one that outlines 13 specific agricultural commodity contracts.

CFTC Commitment of Traders

COT reports provide a breakdown of each Tuesday’s open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. 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. The short format shows reportable open interest and week-to-week open interest changes separately by reportable and non-reportable positions. Reportable traders that are not placed into one of the first three categories are placed into the “other reportables” category. 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.

• For example, a trader holding a long put position of 500 contracts with a delta factor of 0.50 is considered to be holding a short futures-equivalent position of 250 contracts.
• 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.
• Every other reportable trader that is not placed into one of the other three categories is placed into the “other reportables” category.
• We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading.
• Specifically, 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.

For the COT Futures-and-Options-Combined report, option open interest and traders’ option positions are computed on a futures-equivalent basis using delta factors supplied by the exchanges. Long-call and short-put open interest are converted to long futures-equivalent open interest. Likewise, short-call and long-put open interest are converted to short futures-equivalent open interest. For example, a trader holding a long put position of 500 contracts with a delta factor of 0.50 is considered to be holding a short futures-equivalent position of 250 contracts. A trader’s long and short futures-equivalent positions are added to the trader’s long and short futures positions to give “combined-long” and “combined-short” positions.

This script marks the last Friday of the month in a daily chart because this is the day when BTC and ETH options expire according to Deribit. I only found a script that highlights the 3rd Friday of the month, which is not what I wanted. This script tries to figure out the correct number of days per month but is not aware of holidays which might displace the expiry date.

Accordingly, for “Nonreportable Positions,” the number of traders involved and the commercial/non-commercial classification of each trader are unknown. As the U.S. dollar is secondary currency of all futures contracts, the CoT chart for EUR represents statistics for EUR/USD. Forex trading, with its potential for substantial profits, demands a deep understanding of the psychological aspects that can impact trading decisions. The new guide from PipPenguin.com delves into the fascinating realm of trading psychology, empowering traders to harness their emotions for more informed and controlled trading. 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. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading.

These are typically hedge funds and various types of money managers, including registered commodity trading advisors (CTAs); registered commodity pool operators (CPOs) or unregistered funds identified by CFTC. The strategies may involve taking outright positions or arbitrage within commitment of traders forex and across markets. The traders may be engaged in managing and conducting proprietary futures trading and trading on behalf of speculative clients. The COT reports are based on position data supplied by reporting firms (FCMs, clearing members, foreign brokers and exchanges).