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.

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