Commitment of Traders report – COT report.
It is an unusual piece of information for us as forex traders.
COT report is issued every Friday at 18:30 GMT time. it is something that the marketы are always reacting to as it is very important. And what is really interesting is that it is not important what you are trading. COT is going to influence your performance in any case.
According to our friends at babypips COT ‘measures the net long and short positions taken by speculative traders and commercial traders’. To put it easier it is a great way to see how much traders are pressing on the markets. And not even all the traders. Just the biggest players.
And just like in sports, the strongest players are always paid the most attention to. And as we are already talking about them I am talking about players like hedgers, large speculators and retail traders.
But we are going to talk about each of them in our next lessons.
But again we are coming back to the eternal question – as forex traders why do we need to pay attention to the futures market? [COT is issued in the futures market]. Well, I’ll tell you this – futures are the best way to see how big players are moving their money is the over-the-counter market like forex since there is no centralized exchange for them.
Now when we are unaware of the real effect of the COT reports all of these words are just the same as the empty sounds to us. We need to dive deeper into the topic! And that is exactly what we are going to do further!
