Commitments of Traders COT Report

Successful trader Larry Williams reveals industry secrets that help investors and traders successfully invest and trade side-by-side with the largest commercial interests in the world. You’ll be introduced to the usgfx review, the best resource for achieving trading success, learn exactly what the information it contains means, and plan for maximizing profits by acting on reported actions. This report breaks down the reportable open interest by non-commercial traders and commercial traders. Net Noncommercial Positioning is the difference between the short and long open interest of noncommercial traders. Net positioning offers a particularly good measure of CoT data and tends to follow the price action. Both the sentiment line and the net long/short line are important trend indicators.

You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. However, the original COT reports are text based and the CFTC does not provide any data analytics tools. In early October 2009, EUR futures net long positions hit an extreme of 51,000 before reversing.

The noncommercial participants are split between managed money and other reportables. These are typically hedge funds and various types of money managers, including registered commodity trading advisors ; registered commodity pool operators or unregistered funds identified by CFTC. The strategies may involve taking outright positions or arbitrage within and across markets. The traders may be engaged in managing and conducting proprietary futures trading and trading on behalf of speculative clients. The short format shows reportable open interest and week-to-week open interest changes separately by reportable and non-reportable positions.

The report uses data provided by reporting firms like clearing houses and forex brokers. It publishes the overall holdings of different assets by commercial traders, non-commercial traders, and retail traders to promote the transparency in the commodities and futures market. It breaks down the open-interest positions of all major contracts that have more than 20 traders. The legacy COT simply shows the market for a commodity broken into long, short, and spread positions for non-commercial traders, commercial traders, and non-reportable positions .

The aggregate of all long open interest is equal to the aggregate of all short open interest. Short and Long Format of ReportsThe Legacy and Disaggregated reports are available in both a short and long format. “Finally, an insider’s take on what really goes on behind the scenes in commodity trading. Larry writes his view of trading, as only he knows it, from his twenty-five years of experience.”

Note that traders are able to report business purpose by commodity and, therefore, can have different classifications in the is opteck regulateds for different commodities. For one of the reports, Traders in Financial Futures, traders are classified in the same category for all commodities. Noncommercial traders are speculators, such as individual traders, hedge funds and large institutions, which operate on the futures market and meet the reporting requirements. Commodity traders have access to a special market report each week that provides a snapshot of the positions of large institutional traders and small speculators in each commodity futures category.

cot report

Determine significant support and resistance levels with the help of pivot points. MotivatedWith our assistance and your motivation you will become a true professional in futures and commodities trading. SuccessfulOur coaches are those profitable traders, using our strategy. We’ll talk about your wealth accumulation problems and see if we can offer you a solution with our products. With the help of this calculation, we now have some informative value of the current net position, which serves as the basis for our trading. We then present these net values graphically in order to get an overview of the development, and especially the changes of the positions.

Market Info

Whilst net-short exposure has held above -33k since May 2020, there have been periods where we’ve seen it move to -60 and -90k contract, so it is not all clear that we’re near a sentiment extreme. Inflation data this week could also entice further shorts if it comes in sifter as expected, as it ties into the theme that the BOC will hold rates at 4.25% at their first meeting in 2023. The key thing here is for investors and traders to believe in their analysis and their opinions. When you find these positions, it could be a signal that a market reversal is around the corner. This is because, if everyone is long a currency or a commodity, who is left to short? Similarly, if everyone is short a currency, who is left to sell?

The video in today’s article was a live presentation given by Wade Hansen in 2008. Wade developed the COT report graph including the calculations behind its sentiment line. He has tested the system in the live market and on past data and will share some of his findings in the presentation. The COT report is released each week after market close on Friday. As I mentioned above, the weekly data is useful but seeing the information within a chart to gather historical context can provide additional insight.

If you are interested in doing some independent research on the COT report you can get it free from the CFTC’s website at The report also is more widely available—moving from a subscription-based mailing list to fee-based electronic access in 1993, and, beginning in 1995, becoming freely available on CFTC.gov. Once the page has loaded, scroll down a couple of pages to the “Current Legacy Report” and click on “Short Format” under “Futures Only” on the “Chicago Mercantile Exchange” row to access the most recent COT report. From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here.

  • Of course, not all indicators will make money and there is always risk; you can lose as much or more than you can make on a trade.
  • She has worked in multiple cities covering breaking news, politics, education, and more.
  • If traders are net short, the COT graph will show a negative position and if they are net long the COT graph will show a positive position.
  • As you can see, the net positions were relatively stable in the past 12 months.
  • One way to use the COT report in your trading is to find extreme net long or net short positions.

The legacy COT report separates reportable traders only into “commercial” and “non-commercial” categories. Ignore the commercial positions for now, since those are mainly for hedging while small retail traders aren’t relevant. One way to use the COT report in your trading is to find extreme net long or net short positions. The COT is a key data source for traders, as it can provide guidance on whether to go long or short on each market. Weaker oil prices and expectations that the BOC could be approaching a pause in rate hikes has seen bears load up on Canadian dollar futures. Net-short exposure is at a 14-month high and gross shorts are now at a 3.5-year high.

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Her expertise is in personal finance and investing, and real estate. The COT data is from Tuesday, and is released Friday by the CFTC. Reporting firms send Tuesday open interest data on Wednesday morning.

cot report

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. In the middle of September, net short positions hit an extreme of 45,650. LARRY WILLIAMS is a hedge fund manager and—based on books in print—perhaps the most widely read futures author of all time.

COT report online with free charts

The data is available from the CFTC’s website and is prominently featured right from the home page. In fact, of the three types of traders, investors usually pay attention to the one type with requirements most like the individual trader. The COT report can provide a window into what large institutional traders are doing. In October 2022, the COT report is made available in a public reporting environment which allows users to search, filter, customize and download report data. Euronext publishes the CoT reports every Wednesday afternoon reflecting positions held on previous Friday at close of trading and submitted to the competent authorities.

And, despite its limitations, most traders agree that even the questionable data of the COT is better than nothing. Thus a positive number means they hold more long positions than short and vice versa. Every other reportable trader that is not placed into one of the other three categories is placed into the “other reportables” category.

cot report

These are the market participants who conduct speculative transactions on a large scale. Typically, this would be the institutional traders, hedge funds or large investment banks, all of whose positions exceed the limit of the reporting obligation. The disaggregated COT report is another one that is commonly known by traders. It provides a deeper breakdown of the market participants, splitting commercial traders into producers, merchants, processors, users, andswapdealers.

CoT Charts

The COT report shows how committed the large institutional “non-commercial” traders are to long or short positions within each currency pair. If traders are net short, the COT graph will show a negative position and if they are net long the COT graph will show a positive position. The COT charts also illustrates the rate of change within those long or short balances.

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We can find this information by analyzing the market in which a COT signal has arisen over a different time period. We can now switch to the daily chart and examine the trend with the help of various indicators in order to determine a concrete entry point. The Commitments of Traders report is an exchange report that is published weekly by the American Commodity Futures Trading Commission . This is meant to provide a clearer picture of what the people with skin in the game—the users of the actuals—think about the market versus the people with profit motivations or speculators.

What is Commitment of Traders?

Investment banks and large hedge funds are also put in this category because they want to protect themselves from these sudden changes. The best weekly options strategies is a weekly report published by the Commodity Futures Trading Commission on Friday, with the data obtained by the close of business on Tuesday. There are the Non-Reportables, probably people like you…people who are trading in smaller amounts; the average trader.

References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. The Commitment of Traders reports show futures traders’ positions at the close of Tuesday’s trading session. The report is prepared by the Commodity Futures Trading Commission . It is an excellent trading tool and can be used as an indicator for analyzing market sentiment. Markets are only included if 20 or more traders hold positions equal to or above the reporting levels established by the CFTC and the respective exchanges.

The COT report essentially shows the net long or short positions for each available futures contract for three different types of traders. If traders are overwhelmingly long or increasing their long positions then we will have a bullish bias on that market. Similarly, if traders are short or increasing their short positions then we will have a bearish bias. Forex traders may use currency derivatives COT reports to find large net long or net short positions. A “money manager,” for the purpose of this report, is a registered commodity trading advisor ; a registered commodity pool operator ; or an unregistered fund identified by CFTC.

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