COT and Forex Volume
As the foreign exchange business market is different when compared to counter market, it is difficult for the traders to know about procedures of trading and methods to do trading. Just like knowing the fundamentals of selling and buying it is important to know the movement of the market.
Most of the retail traders are concentrates on spot markets in forex. Those who are having huge amount for capital prefer central banks, mutual funds, investment banks and related currency trading methods. It means that they are doing trade on the regulated market.
Showing the Cards in COT
The future of foreign exchange market is regulated by Commodities Futures Trading Commission where big traders have to submit their business report weekly. From there CTFC collects the details and makes COT report by comparing each and every report.
Commitment of Traders
The COT report gives us an idea about the perfection of each and every trader in detail. It consists of trade details about each trade specifically. By analyzing the report of buying and selling of each trader it is easy for us to calculate the movement of forex market in the coming future easily. By knowing the movement position of forex market we can invest money for long or short positions as per the report.
What we will get from COT report
COT report will give us an idea about the volume of trade happening each week. Also we can know about bullish and bearish each type of forex traders in market.