What does Non Commercial Trader mean?
Commodity Futures Trading Commission (CFTC) has segregated the traders in futures markets as: Commercial and Non-commercial Traders. While a commercial trader needs to be engaged in the business activities hedged by use of used the futures or option markets; a non-commercial trader is one who does not own the underlying assets or its financial equivalent and only holds positions in futures contracts.
Futures Knowledge Explains Non Commercial Trader
Non-commercial traders are individual investors, hedge funds, and financial institutions. For example, if an oil company hedges oil futures, the oil company is classified as a commercial trader. But if an investor buys or sells oil futures, he is a non-commercial trader.