Derivatives • Positioning
Commitments of Traders (COT) Report Explained
CFTC commercial hedgers vs. non-commercial speculators, positioning percentiles, and crowded trade reversals.
Author: CMD Wire Institutional Research
Updated: August 2026 • 6 min read
1. What Is the COT Report?
Published every Friday afternoon by the Commodity Futures Trading Commission (CFTC), the Commitments of Traders (COT) Report provides a breakdown of aggregate open interest in U.S. futures and options markets as of the previous Tuesday's market close.
2. Key Trader Categories
- Commercial Traders (Hedgers): Physical commodity producers and institutional consumers (e.g. oil refiners, gold miners, airlines) who use futures to lock in operational prices. Generally smart-money contrarians who trade against market sentiment.
- Non-Commercial Traders (Large Speculators): Commodity Trading Advisors (CTAs), hedge funds, and quantitative trend-followers who trade for speculative capital appreciation.
- Non-Reportable (Small Speculators): Retail traders with smaller position sizes, frequently caught on the wrong side at major cycle turning points.
3. COT Positioning Extremes
Quantitative models calculate the COT Index (3-Year Percentile Rank) of Non-Commercial net positions. When large speculators reach extreme net-long positioning (> 95th percentile) or commercial hedgers reach record net-short exposure, the market is crowded and vulnerable to sharp trend reversals.