Commitment of Traders COT Report: Bedeutung und Strategien
The total open interest is given as well as changes in open interest. 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 (CME), then logic follows that those in the spot market may have a similar position. If positions become extended (overbought or oversold) on the CME, then it is likely that positions are extended in the trading community as a whole.
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. But if you need details on past data, check the historical data section of the CFTC website. And if you need to check the weekly reports in a particular month, use the Historical Viewable section of the website.
- Of these, 14,320 were longs held by dealers and 10,875 shorts sold by institutional traders.
- CFTC staff does not know specific reasons for traders’ positions and hence this information does not factor in determining trader classifications.
- If X percent of traders hold a long in a currency on the Chicago Mercantile Exchange (CME), then logic follows that those in the spot market may have a similar position.
- The information in the report indicates how much interest there is, both long and short, in various derivatives contracts, and which type of market actor is involved.
- The page also lets you compare other Currencies or Stocks or Indexes or Commodities against the US Dollar Index, so you can measure their performance against the dollar and see how they are affected by changes in the market.
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. But with the COT report, forex traders can have an insight into these pieces of info. Commercial traders are big institutions who are in the futures market to hedge against risks due to unfavorable price movements that could affect their investments. Whether you’re a complete beginner or an advanced trader, this trading journal spreadsheet is designed to help you take your trading to the next level.
The Legacy CFTC Report
- Furthermore, the COT long format reports show the percent of open interest held by (i) the largest four and (ii) the largest eight reportable traders, without regard to whether they are classified as commercial or non-commercial.
- Only risk capital should be used for trading and only those with sufficient risk capital should consider trading.
- Thanks to this information, traders can respond to emerging movements on time.
- Whether you’re new to trading or looking to expand your market analysis knowledge, this guide is the perfect resource.
The traders may be engaged in managing and conducting proprietary futures trading and trading on behalf of speculative clients. Examples of these non-commercial traders include hedge funds, trading advisors, and other huge financial institutions. These major market drivers include institutional traders, hedge funds, big banks, and more. And the weight these traders pull on the markets can sometimes be staggering enough to drive trends. As retail forex traders, our best bet is to trade like big financial institutions.
Step 2: Analyze the Data
Instead, use it in combination with your technical analysis tools to help you get the best out of it. Notice how the non-commercial’s long positions increased by 2100 while their shorts reduced by 20. Before we discuss how to trade the forex market using the COT Report, you should know why the COT Report is important for forex traders.
Some analysts look at the dollar equivalent holdings of the seven major currencies (EUR, JPY, GBP, CAD, AUD, CHF, NZD) to gauge overall sentiment towards the dollar. Furthermore, the COT long format reports show the percent of open interest held by (i) the largest four and (ii) the largest eight reportable traders, without regard to whether they are classified as commercial or non-commercial. The concentration ratios are shown with trader positions computed on a gross long and gross short basis and on a net long or net short basis.
The short format shows reportable open interest and week-to-week open interest changes separately by reportable and non-reportable positions. For reportable positions, additional data is provided for commercial and non-commercial holdings, spreading (in certain categories only), changes from the previous report, percent of open interest by category, and numbers of traders. Technically, they are enterprises that have a currency position that is incidental to their core commitment of traders report forex business.
Options data can generally be calculated by subtracting from the Futures and Options Combined data information set forth in the Futures report, but some information will be lost due to “spreading,” as discussed further below. As this showed us the strength of the Canadian dollar, we could use this as a trend move of USD/CAD short. Commitments of Trader Report (COT) is published every week by the Commodity Futures Trading Commission (CFTC). There is no central body, like NYSE, where all trades are recorded. If you are going to make sense of what is before you on the report, here are some terms you must understand.
Our experts are dedicated to simplifying the complexities of COT data and providing clear explanations for you to accurately interpret the data and fully understand the COT reports. The Division of Market Oversight has prepared the following responses to questions regarding Commitments of Traders reports (COT Reports) published by the Commission. The responses to these FAQs reflect only the views of DMO staff, and not necessarily those of the Commission or any other branch or division.