COT report measures the net long position and net short position held in the futures trading market, which can be used as an index to analyze market sentiment. Judging from the time of publication, it is more suitable for long-term traders.
Position types can be divided into two categories, reportable positions and unreported positions. Among them, reporting posts are divided into non-commercial posts and commercial posts.
Declared positions refer to the positions that have the obligation to declare to the Commodity Futures Commission. Unreported positions refer to the number of open contracts that have not been reported to the Futures Trading Commission. In fact, the number of long positions of scattered small-scale speculators is not worth reporting. When analyzing, we only need to look at the location of the report.
Non-commercial positions include positions established by individual traders, hedge funds and financial institutions, and most of their transactions are for speculative profits. Commercial positions generally refer to non-speculative positions established by large commercial institutions to hedge exchange rate risks. Among them, non-commercial positions have reference value.