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Introduction To The Commitment Of Traders (COT) Report Commitments of Traders (COT) Report is a market report posted on Friday by U.S. Commodity Futures Trading Commission (CFTC) on the Tuesday's open interest of Traders who are obliged by law to report on their open positions. It is used by Forex Traders.The report looks at 3 Major Players in the Market. It breaks down Total Open Interest (O/I) into the 3 players' Long and Short positions. The 3 Traders are the Commercials, the non-Commercials and the Non-reportables.A sample of the COT Report is show below. The Commercials are commonly known as Smart Money, Big Dogs and Hedgers. They are usually the Producers and Consumers of the product or commodity. They have deep pockets and have the best knowledge and information of the market. Being Hedgers, they have positions on the Spot, Futures and Option market for their daily operations. They usually used Futures and Options market to reduce their risk exposure, thus hedging their risk over Spot Market.The non-Commercials are also known as Large Speculators. They are usually trading the market without settlement, ie They do not want the physical product, they speculate in...more
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