Strong Hands


DEFINITION of 'Strong Hands'

1. The intention of futures-contract holders to receive delivery of the underlying commodity.
2. A futures-contract holder that is a well-financed speculator.  

BREAKING DOWN 'Strong Hands'

1. Only about 2% of futures-contract holders ever actually take possession of the underlying. They almost always close out their position (likely by taking an offsetting position) prior to the contract's specified delivery date. A strong hand is a contract holder who is willing and likely will take possession of the underlying. They are the overwhelming minority in futures trading.

  1. Weak Hands

    1. The intention of futures contract holders not to receive delivery ...
  2. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  3. Delivery

    The action by which an underlying commodity, security, cash value, ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  5. Large Trader

    An investor or organization with trades that are equal to or ...
  6. Speculator

    A person who trades derivatives, commodities, bonds, equities ...
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