Weak Hands


DEFINITION of 'Weak Hands'

1. The intention of futures contract holders not to receive delivery of the underlying.

2. Retail traders in the forex market who abide by the conventional wisdom that when a pattern is broken, get out.


1. Futures contract holders with weak hands are generally considered to be small speculators without the financial resources associated with the delivery and storage.

2. For example, retail traders with weak hands would place a stop at the bottom of a double bottom or at the top of a double top and once the pattern is broken, they would automatically be stopped out. Conversely, dealer and institutional traders will exploit this behavior by staying in once the pattern is broken, forcing the weak hands out before allowing the price to change direction and the pattern to correct itself.

  1. Large Trader

    An investor or organization with trades that are equal to or ...
  2. Reporting Level

    A level of ownership of a specific futures position wherein the ...
  3. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  4. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
  5. Underlying

    1. In derivatives, the security that must be delivered when a ...
  6. Delivery

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