Uses the futures market for "hedging purposes since they are involved in the production, processing or merchandising of a commodity. ( W" L# q) C# x6 ] n( M; T
Commercial traders are well capitalized & usually provide the "fuel" for market advances/declines. In foreign currency futures however, commercial positions are 0 E3 O/ c4 k+ o
less relevant as the majority of trading is done in the forex market. , @% X: `( i8 ]! u2 L* B; J$ z Non Commercial Trader (Speculators)非商业性交易商(投机者) Is a market participant who tries to profit from the buying and selling of futures contracts by anticipating future price movements. % b* m: R9 s8 D( }3 \" T Non commercial data is a reliable source of information as it captures trader’s positions in a specific market. Extreme positioning in the currency futures market has historically been accurate in identifying important market reversals. 8 m* T$ N8 I+ }8 y- p3 ^$ u Many FX traders rely on the currency futures data to determine future price direction