rebateinforextrading the futures rebatesinforex, you first need to know to understand the major players best forex rebate the futures market These players can be divided into the following three main categories: 1. commercial traders (hedgers) 2. non-commercial trad……" />

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Forex Trading Analysis Market Sentiment Analysis 3 - Three Steps to Reading the CFTC Position Report

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In order to underst bestforexrebaterebateforex.com">rebateinforextrading the futures rebatesinforex, you first need to know to understand the major players best forex rebate the futures market These players can be divided into the following three main categories: 1. commercial traders (hedgers) 2. non-commercial traders (large speculators) 3. retail traders (small speculators) Hedgers those who want to protect themselves against Agricultural producers or farmers who want to hedge against or minimize the risk of changes in commodity prices rebatemeaninginforex part of this group of traders. The key characteristic of hedgers is that they are extremely bearish at the bottom of the market and extremely bearish at the top of the market. Lets take an example. If a rare virus were to spread in the United States one day, people infected with it would become zombies who would wander around and do things that would harm society, such as robbing strangers of their iPhones. The entire United States into a panic guns and ammunition obviously do not work on these zombies the only way is to use sharp objects to cut off their heads Apple saw this market demand, and intends to form an army of samurai to protect iPhone users attacked by zombies in order to form such an army, Apple needs to import special samurai swords from Japan Steve Jobs and Japans Apple also knew that if the dollar/yen fell after three months, they would pay more yen for the katana in order to protect Apples interests, or to hedge against possible exchange rate fluctuations, Apple purchased yen futures if, after three months, the dollar/yen fell. If the dollar/yen falls after three months, Apples gains on the futures contract will offset the increased costs it will then pay to the Japanese samurai sword maker On the other hand, if the dollar/yen rises after three months, the companys losses on the futures contract will be offset by the decline in the cost of paying for the samurai swords Large institutional speculators are different from hedgers in that large institutional speculators participate in foreign exchange trading for the purpose of They are not interested in holding the underlying asset, while hedgers are not interested in profiting from the trading activity at all. Some institutional speculators are strong trend followers, as they buy when the market shows an uptrend and sell when the market shows a downtrend. They usually follow the moving averages until the trend of the moving averages changes Smaller speculators Smaller speculators, with smaller accounts These small speculators are made up of hedge funds and retail investors They usually move against the trend and often stand in the opposite direction to the market For this reason, they are far less likely to trade successfully than hedgers and large institutional speculators; however, when they are able to follow the trend, they will maintain a greater focus on market tops and bottoms.

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