Etymology
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handgun (n.)
mid-14c., of unmounted firearms, from hand (n.) + gun (n.). In modern use, "a pistol," from 1930s, American English.
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handicap (n.)

1650s, from hand in cap, a game whereby two bettors would engage a neutral umpire to determine the odds in an unequal contest. The bettors would put their hands holding forfeit money into a hat or cap. The umpire would announce the odds and the bettors would withdraw their hands — hands full meaning that they accepted the odds and the bet was on, hands empty meaning they did not accept the bet and were willing to forfeit the money. If one forfeited, then the money went to the other. If both agreed either on forfeiting or going ahead with the wager, then the umpire kept the money as payment. The custom, though not the name, is attested from 14c. ("Piers Plowman").

Reference to horse racing is 1754 (Handy-Cap Match), where the umpire decrees the superior horse should carry extra weight as a "handicap;" this led to sense of "encumbrance, disability" first recorded 1890. The main modern sense, "a mental or physical disability," is the last to develop, early 20c.

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handicap (v.)
"equalize chances of competitors," 1852, but implied in the horse-race sense from mid-18c., from handicap (n.). Meaning "put at a disadvantage" is from 1864. Earliest verbal sense, now obsolete, was "to gain as in a wagering game" (1640s). Related: Handicapped; handicapping.
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handicapped (adj.)
"disabled," 1915, past-participle adjective from handicap (v.). Originally especially of children. Meaning "handicapped persons generally" is attested by 1958.
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handicraft (n.)
c. 1200, hændecraft, a corruption (perhaps from influence of handiwork) of Old English handcræft "skill of the hand," from hand (n.) + craft (n.).
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handily (adv.)
"readily, easily;" also "by hand," c. 1400, handeli, from handy + -ly (2). Earlier it meant "done by hand" (late 14c.).
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handiwork (n.)
late 12c., from Old English handgeweorc "work of the hand, creation," from hand (n.) + geweorc, collective form of weorc "work" (see work (n.)). Old English collective prefix ge- regularly reduces to i- in Middle English, and the word probably came to be felt as handy + work.
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handkerchief (n.)
1520s, from hand + kerchief, originally "cloth for covering the head," but since Middle English used generally as "piece of cloth used about the person." A curious confluence of words for "hand" and "head." By-form handkercher was in use 16c.-19c. A dropped handkerchief as a token of flirtation or courtship is attested by mid-18c.
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