A technical term from the US futures market. Speculative traders in Comex gold or silver futures are those players who aren’t part of the precious metals industry, and so aren’t looking to hedge an existing position. Instead, these ‘non-commercial’ traders are looking to profit by predicting the direction of prices, buying futures if they think prices will rise, or selling them if they expect prices to fall.
The so-called “speculative net long position” looks at the net betting by speculators overall. It is calculated by taking the total number of long contracts they hold as a group, and subtracting the number of short contracts held by non-commercial traders (such as hedge funds). These positions are considered an indicator of sentiment in the short term on the derivatives market.« Back to Glossary Index