How is the net futures position calculated by the CFTC? For instance, GBPUSD net contract is positive in the CFTC report, what does it mean given that for each buyer there is a seller?

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    $\begingroup$ The CFTC classifies all traders as "commercial" or "non-commercial". They report the total position of "commercial traders". If these are net long then the non-commercials are net short by the same amount and vice versa, so that the net overall position is indeed zero. cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/… $\endgroup$ – noob2 May 10 at 0:30
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    $\begingroup$ Furthermore Futures trading in GBPUSD is a tiny part of GBPUSD trading (most trading is in Spot and Forward FX). So the CFTC figure is not as meaningful as it would be for Soybeans for ex., where most hedging is done through the futures market. Much of the FX hedging that goes on is invisible to the CFTC. $\endgroup$ – noob2 May 10 at 0:35

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