Traders' Commitment Report

Let's have a look at the COT Report.

The Commodity Futures Trading Commission, or CFTC, is the body that publishes the data.

Commitment of Traders report (COT) on Fridays at 2:30 p.m. EST.

The COT is an excellent instrument for determining how heavily speculative and commercial traders are located in the market because it quantifies their net long and short positions.

We'll introduce you to these market participants later. Hedgers, major speculators, and retail traders make up this group.

Each group, like players in a team sport, has its own features and roles.

You can predict upcoming changes in market mood by observing the actions of these actors.

“Why the hell do I need to use data from the FX futures market？” you're apparently thinking.

“Isn't there a report that measures how currency traders are positioned in the spot FX market？”

“I'm a forex spot trader!” I'm not involved in futures market action.

Remember that spot forex is traded over-the-counter (OTC), which means that transactions are not routed through a centralized exchange like the Chicago Mercantile Exchange.

So, what's the nearest thing we can get our hands on to see how the market is doing and how the big players are moving their money？

The futures market's Commitment of Traders Report.

Before we get into how to use the Commitment of Traders report as a forex trader, you must first understand WHERE to get it and HOW to read it.