Page 26 - Futures Money Machine-Study Session #5
P. 26
Beyond The Basics
“COT” Report: Commitment of Traders …
• The Commitments of Traders (COT) reports provide a breakdown of each Tuesday’s
open interest for markets in which 20 or more traders hold positions equal to or above
the reporting levels established by the CFTC. The report is issued on Thursday
evenings by the Commodity Futures Trading Commission. What it does is break down
the amount of buying and selling done by three groups: Commercials, Large Traders,
and Small Traders.
• This report provides valuable information about changes in the position
commitments of various types of investors. It breaks down the open-interest
positions of all major contracts that have more than 20 traders. These reports are
used to help determine the likelihood of a trend continuing or coming to an end. Long
and short positions are calculated as well as changes from the previous week's
positions.
