Free Online Trading Lessons Archives
Commitments of Traders Report (COT)
Decoding the Commitments of Traders Report (COT) to Identify Overcrowded Trades
Click on the thumbnail below to begin watching this video on analysis of the CFTC's COT report.
If a stock trader wants to know what corporate insiders are doing with their shares, they look to SEC (Securities and Exchange Commission) filings for help. Corporate officers, directors, and beneficiary owners are required to report trades they have executed in shares of their company within two business days. Similarly, a commodity trader looks to the Commitments of Trader (COT) report for insight into who is buying and selling futures and options.
The COT report released by the CFTC is the optimal gauge of market sentiment because it doesn't just portray the opinions of the general public; it provides insight into traders that are actually putting their money where their mouths are! Join us to discover how this information might be helpful to market speculation.
- What is the COT?
- When is the Commitments of Traders data collected and released?
- Long vs. Short Format
- Standard COT, or Futures and Options?
- Understanding the relative nature of COT
- Commitments of Traders categories: Commercials, Reportables, Non-Reportables
- Identifying overcrowded trades
- Applying COT analysis to tradign futures and options