How to make money based on the net position in the international market
Commodity Futures Trad rebateforexbrokerg Commission (CFTC) will be published every Friday at about 2:30 p.m. EST ForexRapidRebate position report (COT) Since the CFTC position report shows the net long rebateforexfee net short positions held by speculative traders and commercial traders, the position report is a measure of the status of positions held by Forex Rapid Rebate participants in the market Important Sources Three Types of Market Participants: In order to understand the cashback forex market, you first need to know to understand the major participants in the futures market These participants can be divided into the following three main categories: 1. Commercial traders (hedgers) 2. Non-commercial traders (large speculators) 3. Retail traders (small speculators) Hedgers Hedgers nbsp;Traders who want to protect themselves against unpredictable exchange rate fluctuations rebateforex called hedgers or commercial traders Agricultural producers or farmers who want to hedge against the risk of changes in commodity prices or minimize the risk of such changes are part of this category of traders Banks or businesses that protect themselves against sudden changes in exchange rates or other asset prices can also be considered commercial traders Hedgers The key characteristic of hedgers is that they are extremely bearish at market bottoms and extremely bearish at market tops Large institutional speculators Unlike hedgers, who are involved in foreign exchange trading for the purpose of making a profit and have no interest in holding the underlying asset, hedgers have no interest at all in profiting from their trading activities Some institutional speculators are Some institutional speculators are strong trend followers because they buy when the market shows an uptrend and sell when the market shows a downtrend They continue to increase their positions until the currency price reverses Large institutional speculators are also big players in the futures market because they have huge trading accounts As a result, their trading activity can lead to huge market movements They usually They usually follow the moving averages until the trend of the moving averages changes Small speculators Small speculators, who have smaller accounts These small speculators are made up of hedge funds as well as retail investors They usually move against the trend and often stand in the opposite direction of the market For this reason, they are far less likely to trade successfully than hedgers and However, when they are able to follow the trend, they will keep a greater eye on the tops and bottoms of the market just like a teams players, each player has his or her own unique characteristics and role By observing the behavior of these players, you will be able to anticipate possible shifts in market sentiment You may well ask yourself, why should I use data from the forex and futures markets? You are likely to ask yourself, why should I use data from the futures market? Doesnt the spot forex market have reports that measure the position of currency traders? I am a spot forex trader! The futures market has nothing to do with me Remember, since the spot forex market is over-the-counter (OTC), trading does not go through a pooled trading venue, such as the Chicago Board of Trade So what is the closest we have to understanding market conditions and how large institutional investors move their money? As you may have guessed, it is the trader position report from the futures market. Before you can use the position report to guide your trading, you should first know where to get the COT report and how to interpret it.