1. Dealers:.
- often referred to as market makers, provide liquidity in the futures
market.
- Dealers hedge their own books to manage the risk associated with
providing liquidity to clients. This might involve taking short positions
to offset potential losses from other positions they hold.
2. Asset Managers:.
- Asset managers handle investments on behalf of clients, which
include mutual funds, pension funds, and other institutional investors.
Their primary goal is to achieve a favorable return on investment for
their clients.
- Asset managers use futures to hedge against potential downturns in their
investment portfolios. For instance, short positions in futures can offset losses in
the underlying assets.
3. Hedge Funds:.
- Hedge funds are investment funds that engage in more aggressive and complex
strategies to generate high returns. They often use leverage, derivatives, and other
speculative strategies.
4. Non-Reportable:.
- Retail investors and individual traders who trade futures for personal investment or
speculation.
CME Futures Long/Short Position Largest Changes:
1 contract = (5 Bitcoins)
Hedge Funds:
- Long positions decreased from 15.3k to 7.7k (May 28 to June 4, 2024).
- Short positions decreased from 42.3k to 39.7k (May 28 to June 4, 2024).
Dealers:
- Short positions decreased from 6.4k to 3.8k (May 28 to June 4, 2024).
*Keep in mind hedge funds held 22k short positions opened since last month (hedge funds are totally bearish).
Written by Amr Taha