FOREX THEORY
Commitment of Traders Report
The COT Report: What, Where, When, Why, and How
The Commodity Futures Trading Commission, or CFTC, publishes
the Commitment of Traders report (COT) every Friday, around 2:30 pm EST.
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.
Later on, we’ll let you meet these market players. These are
the hedgers, large speculators, and retail traders. Just like players in a team
sport, each group has its unique characteristics and roles. By watching the
behavior of these players, you’ll be able to foresee incoming changes in market
sentiment.
You’re probably asking yourself, “Why the heck do I need to
use data from the FX futures market?”
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