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Fulton County Ohio | Other than the type of individual who holds each position and volume, what does the Commitment of Traders tell us? There area an equal number of sold and bought positions. The theory that someone is forced to buy or sell to cancel their position is offset by the individual who took the opposite side of the trade. They too must cancel their position. Granted, knowing an end user or producer holds a position indicates how they may be hedged and protected from changes in the fundamentals of the market. Eventually the markets reflect perceived fundamental conditions whether current or expected future reality. Granted, speculators can push a market up or down in extreme due to over emotion or lack of understanding of fundamentals. You never know if they are correct or if producers and end users know more, until it is too late. Specs offer liquidity and opportunity. Beyond that, we are all guessing what the future holds and accepting the risk we are comfortable with. | |
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What's it mean if ...
