It is a widely know fact that CFTC (Commodity Futures Trading Commission) is a regulatory institution for the Forex market in the United States. It is a less known fact among spot FX market participants that this institution releases Commitment of Traders report every Friday (normally).
Commitment of Traders (CoT) is a series of simple reports for all types of futures contracts regulated by CFTC (except holidays or special cases, e.g. government shutdown). They release weekly data at 15:30 (EST) on Fridays. Besides that, traders have access to historical data going as far back as 1986.
The CoT reports contain data about futures trading positions reported to CFTC by qualifying participants of all US futures exchanges. The data reported on Friday is for Tuesday of the previoussame week (i.e. 103 days old). Of 22 currently produced weekly report types, only two are useful to currency traders — Futures Only and
Financial CoT reports show number of long and short contracts held by the following five categories of traders:
Before 2010, CoT reports consisted of 3 categories — “commercial”, “
The current classification of traders is not such straightforward as the previous one, but, nonetheless, you can still draw some general conclusions from CoT reports on currency positions. Dealer/Intermediary is the representation of “smart money”, the traders you would probably want to follow, except for some very rare occasions (e.g. financial crisis). Unfortunately, the data on them is delayed by 3 days, so only
I personally, check almost every CoT report, but I rarely use the data in my analysis, I check it out of pure interest and desire to stay
Loading …
Update 2013-11-16: It looks like the financial CoT reports are released for the same week’s Tuesday nowadays, so the delay is only 3 days (not 10 days).
If you would like to give us more detail on how you use Commitment of Traders report in your currency trading, please feel free to do so using the commentary form below.