What Is Cot Pairs on Forex?

A group of currency pairs that find themselves included in the report from the U.S. Commodity Futures Trading Commission is known as "COT pairs." The group focuses on the net positions assumed by different types of futures traders- large speculators, commercial traders, and even small traders-and is intended for the guidance of forex traders towards sentiment in major currencies.

Important Items in the COT Report:

Longs and Shorts: The COT report describes the number of longs and shorts taken by the different types of traders.
Type of Traders:
Commercial Traders: They are usually firms or other organizations that take futures for hedging their respective positions.
Non-Commercial Traders: They are essentially large speculators, comprising hedge funds that trade with an intention to earn profits.
Non-Reportable Traders: They are small individual traders whose open positions are too low to be reported individually.
The Way Traders Use the Pairs Data of the COT
Traders use the COT report to examine sentiment trends among major currencies, which include especially the following:

EUR/USD (Euro/US Dollar)
USD/JPY (US Dollar/Japanese Yen)
GBP/USD (British Pound/US Dollar)
AUD/USD (Australian Dollar/US Dollar)
USD/CHF (US Dollar/Swiss Franc)
USD/CAD (US Dollar/Canadian Dollar)
The size of large traders can indicate if the data from the reports is pointing to a continuation or a reversal trend.