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 Says:
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 Terms:
Cash Commodity
Delivery
Futures Contract
Large Trader
Small Trader
Speculator
Weak Hands |