Which number should I start with?
Start with net positioning for the relevant trader class, then normalize it.
COT Guide / How to read the COT report
How to read the COT report
To read the COT report, start with the right report type, choose the trader category, calculate net positioning, and compare the current state with that market's own history. The goal is to understand crowding and weekly positioning change. COT data is delayed, so it belongs in a review process, not as a standalone instruction.
Start with the report type
Use the report format that matches the market and trader category you need. For many commodity pages, the key public read is managed-money positioning in the disaggregated report. For financial futures, the trader categories differ, so the page should name the category used.
Read net positioning with context
Net positioning is the difference between reported long and short exposure for a trader class. It is not enough by itself. The same net value can mean different things in markets with different size, history, and open-interest conditions.
Normalize the current state
Use a z-score, percentile rank, or COT index to compare current positioning with the market's own history. This turns a raw number into a crowding read: normal, elevated, extreme, easing, or unavailable.
Check source date and caveat
Every COT read should show the source date. If data is stale, missing, or unsupported for the market, the page or packet should say so instead of filling the gap with a confident sentence.
| Step | Action | Output |
|---|---|---|
| 1 | Choose report type | Correct trader categories |
| 2 | Select trader class | Managed money, leveraged funds, or other stated class |
| 3 | Calculate net positioning | Long exposure minus short exposure |
| 4 | Normalize | Z-score, percentile rank, or COT index |
| 5 | Add source date | Clear data timestamp |
| 6 | Add caveat | Positioning context only |
BoundaryCOT data is delayed. This read reflects the stated COT source date, not a real-time market state.
FAQ
What is managed money?
A trader category commonly used to inspect directional positioning in many commodity futures.
What is a COT index?
A percentile-style way to compare current positioning with historical range.
Can COT extremes persist?
Yes. Crowding can persist, ease, or shift; the report alone does not settle timing.