GBP net non-commercial positions (COT) in United Kingdom

It measures the net position of non-commercial traders in sterling futures: the long contracts they hold open minus the short ones. 'Non-commercial' is the CFTC's label for those trading to profit from price moves -funds, asset managers, CTAs- as opposed to commercial traders, who use futures to hedge a genuine business risk.

It is the difference between non-commercial long and short positions, measured in number of contracts, taken from the CFTC's weekly Commitments of Traders report. The figures reflect Tuesday's close and are released the following Friday at 15:30 Eastern Time.

It measures market positioning, not the economy. A deeply negative net figure shows that speculative money is short sterling: if the price rises, those positions must be closed by buying, which can amplify the move. Historical extremes are often read as a sign that a trend is running out of steam.

It arrives with a three-day lag, so it does not describe today's positioning. It covers only US-regulated futures and misses the spot market, over-the-counter trading and venues abroad. Moreover, the line between commercial and non-commercial traders is set by the participant's own declaration, which does not always reflect their true intent.