The Position Data is based on reports by different firms, like clearing members and brokers. The COT classification/ category of each firm is based on the major business purpose. This business purpose is specified by the firm itself and is checked by the CFTC on veracity. At the point of checking the classification, the CFTC does not know the specific reasons for the positions of the traders. That could lead to misleading information, because one trader holds different positions of a specific future for different reasons, but is specified in one classification for the whole report. That’s nothing evil, just something to keep in mind on deeper COT analysis.
Types of COT Reports
You should only trade in these products if you fully understand the risks involved and can afford to incur losses. Percent of Open Interest – Percents are calculated against https://personal.nedbank.co.za/ the total open interest for the futures-only report and against the total futures-equivalent open interest for the options-and-futures–combined report. Percents less than 0.05 are shown as 0.0, and the percents may not add to exactly 100.0 due to rounding.
Banks fined £100m after traders shared sensitive information in chat rooms
Next, let’s take a look at the Producer/Merchant/Processor/User section. But one source of market information has been around for a long time is the Commitment of Traders Report. I’m reaching out regarding your Trading Journal, https://www.absa.co.za/ which I’ve been using for some time now.
What is Commitment of Traders?
- Although it is measured in the futures market, it can still help Forex traders.
- It breaks down the open-interest positions of all major contracts that have more than 20 traders.
- A rising open interest suggests that new money is entering the market, while declining open interest could indicate that traders are closing their positions.
- The COT report includes several key components, each of which offers valuable information for traders.
- You have created a comprehensive and organized trading journal spreadsheet.I really appreciate the P&L calendar tool, and it has been incredibly helpful.
Understanding the Commitment of Traders (COT) report helps traders understand the market sentiment and what type of positions (long/short/spread) are market participants holding. To determine the number of traders in each category, however, a trader is counted in each category in which the trader holds a position. Therefore, the sum of the numbers of traders in each category will often exceed the “Total” number of traders in that market. 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, and swap dealers. The noncommercial participants are split between managed money and other reportables.
Commitment of Traders Report
British government debt issuance rose sharply after the crisis and the Bank of England shored up the UK economy and markets by buying government debt through regular auctions. LONDON -Britain’s competition regulator has fined Citi, HSBC, Morgan Stanley and Royal Bank of Canada (RBC) a combined 104.5 million pounds ($132.4 million) for exchanging sensitive information about UK government bonds. Please bear with us as we sasol investment address this and restore your personalised lists.
Assessing Market Sentiment
COT reports are used by many speculative traders to help making decisions on whether to take a long or short position. 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. While the COT report provides valuable insights into market positioning, it https://www.liberty.co.za/ should not be used in isolation.