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strong hands

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Financial Dictionary

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.

Investopedia Commentary

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.

Related Links

Futures Fundamentals
Interpreting Volume for the Futures Market

See also: Cash Commodity, Delivery, Futures Contract, Large Trader, Small Trader, Speculator, Weak Hands

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