Strong Hands

Strong Hands

1. In futures, an informal term for a person or firm that is a well-financed speculator. This enables the person or firm to engage in perhaps riskier, or at least larger, trades on the futures market than most other investors.

2. In delivery of commodities and futures, the intent of the investor to receive the underlying asset of the contract. Most commodity and futures traders are speculative investors and have no desire to receive the bushels of corn or pounds of coffee or whatever underlies the contract. Those who do wish to receive the underlying are referred to as trading with strong hands; they make up only about 2% of the futures and commodity markets.