Analyze the Forex Market – 3 divisions of COT report

The COT report from CTFC is nice method to join the market. This COT report is helpful for us to know about the games in the market and to meet the people in trading business.
There are mainly 3 divisions of COT report which are mentioned below:
1. Commercial – These types of traders are the people who are for the purpose of business. These companies will buy and make sale of currency future to get around against the changes of currency values in the market. Also it protects the foreign assets if any kind of fluctuations happen in currency rates.
2. Non Commercial – These traders comes to the market for provisional purposes. Governments, Individual institutions, banks and portfolio managers are example of it. You can watch and analyze these groups for only the purpose of speculation.
3. Non Reportable – This type of traders will never show their positions and other details to CTFC. They make use of minor portion of COT data which is available and some times they will not care it. They will not make sale or purchase of currency to make a fluctuation in the market.
Now it is clear about the buying and selling activity in trading market which comes from different groups. CTFC mainly shows:
Open Interest – Number of contracts ready for sale purpose
Short Interest – This is about the number of contracts available for currency shorting
Long Interest – This is the comparison of number of contracts owned for longing the currency.
CTFC discloses many different data samples but the problem is that they are not actionable as all are simple technicalities. This CFTC reports about the number of institutions that are needed to report about the trades to CTFC. But this is not important because the importance is the knowledge about the amount they are selling or buying.