djamal-soft
الجمعة، 26 أغسطس 2016
Commodity traders have an open access to a distinctive market report each week, which details the position of major corporate speculators and small investors in various future markets. This information is popularly known as Commitment of traders report. The report is an important analytical tool for traders since it offers up-to-date information concerning the trends in every commodity markets. It is also available on future contracts like interest rates, stock indexes, and currencies.
Many speculators utilize the COT report in deciding whether or not to pick a long or short position. One assumption is that small speculators are usually wrong and the ideal position is dissimilar to the net non-reportable position. Another notion is that commercial merchants have a clear mastery of their market, and therefore their positions attract more profits.
The COT report outlines both the net long and short positions for the available futures contract for three types of merchants. If the traders are enormously long or they are just escalating their long positions, a robust bias on the market is expected. Increase of short positions result in a bearish bias on the future market.
Mastery of the COT report becomes easy when you know the types of major players in the market and their corresponding positions. The data usually is presented in three special categories: non-commercial traders, commercial speculators, and non-reporting investors. Commercial speculators consist of institutions and accomplished investors who utilize the futures market to level off their risks specifically in the cash or spot market. A producer may decide to short his or her products to avoid instances of losses in case the price goes down in future.
Non-commercial merchants consist of large corporate investors, hedge funds, and other notable entities, which are trading for investment and growth. They are indirectly involved in the production, supply, and management of the basic commodities and assets. A special attention is paid to this group due to their mastery of futures markets and ability to make calculated guesses. Keeping track on the activities of non-commercial merchants gives investors some insight about the trend for a certain asset class.
Non-reporting category is made up of small investors who never report their positions. They have a habit of betting against trends instead of with it. Thus, only a few people pay attention to this type of investors. The category comprises of private investors who trade in different types of products in the futures market.
There are different categories of COT reports ranging from equity investors (stock prospects), currency traders, and commodity traders comprised of oil and gold. Relying on raw data from CFTC might be confusing. Therefore, it is imperative to view the changes within the information for a significant period instead of a single snapshot.
Changes within open interest are an instrumental tool in mastering the price behaviour of a certain market and tactics for profiting from long-term trends. These changes can be utilized to gauge the general strength as well as the weakness of the trend. For instance, if a market has been experiencing long-term downtrend or uptrend with growing open interest levels, a decrease or balance would be a sign that the trend is approaching its end.
Many speculators utilize the COT report in deciding whether or not to pick a long or short position. One assumption is that small speculators are usually wrong and the ideal position is dissimilar to the net non-reportable position. Another notion is that commercial merchants have a clear mastery of their market, and therefore their positions attract more profits.
The COT report outlines both the net long and short positions for the available futures contract for three types of merchants. If the traders are enormously long or they are just escalating their long positions, a robust bias on the market is expected. Increase of short positions result in a bearish bias on the future market.
Mastery of the COT report becomes easy when you know the types of major players in the market and their corresponding positions. The data usually is presented in three special categories: non-commercial traders, commercial speculators, and non-reporting investors. Commercial speculators consist of institutions and accomplished investors who utilize the futures market to level off their risks specifically in the cash or spot market. A producer may decide to short his or her products to avoid instances of losses in case the price goes down in future.
Non-commercial merchants consist of large corporate investors, hedge funds, and other notable entities, which are trading for investment and growth. They are indirectly involved in the production, supply, and management of the basic commodities and assets. A special attention is paid to this group due to their mastery of futures markets and ability to make calculated guesses. Keeping track on the activities of non-commercial merchants gives investors some insight about the trend for a certain asset class.
Non-reporting category is made up of small investors who never report their positions. They have a habit of betting against trends instead of with it. Thus, only a few people pay attention to this type of investors. The category comprises of private investors who trade in different types of products in the futures market.
There are different categories of COT reports ranging from equity investors (stock prospects), currency traders, and commodity traders comprised of oil and gold. Relying on raw data from CFTC might be confusing. Therefore, it is imperative to view the changes within the information for a significant period instead of a single snapshot.
Changes within open interest are an instrumental tool in mastering the price behaviour of a certain market and tactics for profiting from long-term trends. These changes can be utilized to gauge the general strength as well as the weakness of the trend. For instance, if a market has been experiencing long-term downtrend or uptrend with growing open interest levels, a decrease or balance would be a sign that the trend is approaching its end.
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When you need the facts about the commitment of traders, visit our web pages online today. More details are available at http://stock-compass.com now.
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