COT Report: How to Read Positioning in Futures Markets
Macro Glossary, Indicators and Reads
By Ken Chigbo, macro trader and founder of KenMacro, 18+ years in markets.
Updated 2026-05-20
The desk’s answer
The COT report is the weekly Commitments of Traders report published by the US CFTC, released every Friday at 15:30 Eastern (20:30 UK) showing futures positioning as of the previous Tuesday’s close. It splits trader positioning into categories: in the Legacy report, Commercials (hedgers), Non-Commercials (speculators) and Non-Reportables (small traders). In the Disaggregated report, Managed Money (hedge funds, CTAs), Other Reportables, and Producer/Merchant are tracked separately. Macro traders watch Non-Commercial or Managed Money net positioning for sentiment extremes that often precede reversals.
Defined term, COT (Commitments of Traders) report
The COT report is the weekly Commitments of Traders report published by the US Commodity Futures Trading Commission, showing aggregate futures positioning by trader category as of the previous Tuesday’s close. The Legacy report splits positioning into Commercials, Non-Commercials and Non-Reportables; the Disaggregated report splits Non-Commercials further into Managed Money, Other Reportables and Producer/Merchant categories.
How the COT report is structured
The CFTC publishes two main report formats. The Legacy report (the older format) has three categories: Commercials (large hedgers like producers and consumers of the underlying), Non-Commercials (large speculators including hedge funds and CTAs), and Non-Reportables (small traders below the reporting threshold). The Disaggregated report (introduced 2009) splits Non-Commercials into Managed Money (hedge funds, CTAs) and Other Reportables, and Commercials into Producer/Merchant/Processor/User and Swap Dealers. For currencies, futures and most commodities both reports are published each Friday.
How to read positioning extremes
The standard read is Non-Commercial or Managed Money net position (longs minus shorts) as a percentage of open interest or compared against its multi-year historical range. When Managed Money is at a 3-year extreme long in EUR or gold, the trade is crowded and vulnerable to mean reversion on any negative catalyst. When Managed Money is at a 3-year extreme short in the dollar (via DXY futures or EUR longs), the dollar is set up for a squeeze higher. The signal is positioning extremity, not direction; an extreme can persist for months before reversing, so timing requires combining COT data with price structure and a catalyst.
Limitations of the COT report
Three caveats. First, the report is for futures only; spot, swap and OTC positioning are invisible. For currencies this matters because the OTC market dwarfs futures. Second, the data is lagged: Tuesday’s positioning released Friday means up to a week of positioning change is unseen. Third, the categories are imperfect: some commercial hedgers act speculatively, some hedge funds are classified as Other Reportables. The report is most useful as a sentiment gauge over multi-week timeframes, not as a precise day-to-day signal. The desk reads COT for regime extremes, not for entries.
Frequently asked
When is the COT report released?
Every Friday at 15:30 Eastern time (20:30 UK time), showing positioning as of the previous Tuesday’s close. The 3-day lag means up to a week of positioning change is invisible when the report is published.
What is the difference between the Legacy and Disaggregated COT reports?
The Legacy report has three categories: Commercials (hedgers), Non-Commercials (speculators) and Non-Reportables (small traders). The Disaggregated report splits Non-Commercials into Managed Money (hedge funds, CTAs) and Other Reportables, and Commercials into Producer/Merchant and Swap Dealers.
How do traders use the COT report?
As a sentiment gauge for positioning extremes. When Non-Commercial or Managed Money net position is at a 3-year historical extreme, the trade is crowded and vulnerable to mean reversion. The signal works over multi-week timeframes, not for daily entries.
What this means at the desk
Read COT for crowded-trade warnings, not for entries. Extremes can persist for months before they break.
Read next from the desk
Educational glossary entry only,
From the desk
Knowing the term is step one. The next question is always which broker actually serves you well. The desk audits eight brokers on regulation by entity, true cost, and honest fit, with the regulatory caveats the comparison sites bury.
not financial advice and not a trade signal. The desk teaches a reading framework, never entries, targets or recommendations. Trading forex, indices and leveraged products carries significant risk and may not be suitable for all traders. Some broker links on this site are commercial partnerships and KenMacro may receive compensation, which does not change the editorial view. Only trade with capital you can afford to lose.
From the desk, free
Get the macro framework the desk actually trades
The same regime-first framework behind every call on this site, plus the weekly macro brief. Free. No spam, unsubscribe anytime.
Continue reading
From the desk
Where this gets traded
Reading the macro driver is half of it. The other half is an account that holds execution when the driver actually moves the tape. See the KenMacro desk guide to the best brokers for macro traders.
Read the desk guide →