| Commercial Traders | |
 A classification used by the Commodity Futures Trading Commission (CFTC) for traders that use the futures market primarily to hedge their business activities. |
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 This type of classification is usually given to futures commission merchants, foreign brokers, clearing members or even investment banks that buy index futures to hedge current long positions. An increase in commercial traders' long positions in a certain commodity may mean these traders believe the price of the commodity will increase, in which case they would not want to be adversely affected by missing out on a price increase. |
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 Futures Fundamentals - For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work, why investors use them, and much more. Discovering Open Interest - Part 1 - Applied primarily to the futures market, this indicator confirms trends and reversals. Discovering Open Interest - Part 2 - Volume should inform your use of this indicator in confirming trends and reversals. |
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