Non-reportables in gold trading
Non-reportables are the gold futures positions of traders too small to meet CFTC reporting thresholds, often read as a gauge of small speculator sentiment.
Also called Small speculators, Nonreportable positions, Small traders
Non-reportables are the positions in the Commitments of Traders report that belong to traders below the CFTC’s reporting thresholds. Their size is calculated as total open interest minus all reported positions, so the category’s makeup is unknown, but it is generally assumed to be mostly smaller speculators.
How it applies to gold trading
Some analysts use the non-reportable net position as a contrary indicator, on the view that small traders tend to be most bullish near tops and most bearish near bottoms. The evidence for that is mixed, and the category is small relative to managed money and commercials in gold. It is best read as one piece of a broader positioning picture.
The COT data is released on Fridays for positions as of the previous Tuesday, so it lags fast markets by several days.
Worked example
Example (hypothetical numbers): after a $250 rally, non-reportables’ net long reaches its highest level in two years while managed money net long is also near a peak. A trader treats this as a sign the rally is crowded and tightens stops on longs, rather than as a signal to short.
A common mistake
Treating small-trader positioning as a precise reversal signal. It can stay extreme for weeks.
See also: COT report, Managed money, Net position, Open interest.
Frequently asked questions
Who are non-reportables in the COT report?
Traders whose positions are below the CFTC reporting threshold. They are assumed to be mostly smaller speculators.
Is non-reportable positioning a contrarian signal?
Some analysts use it that way, but evidence is mixed. Use it with other positioning data, not alone.
How is the non-reportable position calculated?
Total open interest minus the positions of all reportable traders.
Why is the non-reportable category small in gold?
Most gold futures open interest is held by large reporting traders such as funds, banks and commercial hedgers, leaving a modest share below the thresholds.