Like the grip, hand position during the setup can change ball flight dramatically. Lower shots, higher shots, fades, draws etc. are all influenced by hand position.
When we speak of 'hand position' we are referring to the height of the hands at address. Otherwise explained, the distance of the golfer's hands from the golfer's body and their position from left to right relative to the center of the body. It is a good idea to experiment with different hand positions to see which positions result in what kind of shot for your swing.
Three general rules follow:
A forward press or moving of the hands ahead of the club head at address will lower the trajectory of a shot.
Moving the hands further away from the body or reaching out to the ball may create fades or slices.
Lifting the hands so your arms become more of a direct extension straight down the shaft of the club will allow the club to turn over more and therefore reduce slices, remove a fade or even create a draw or hook depending on other swing characteristics.
The best place to begin is a hand position that includes the following:
Hands hanging directly down from your shoulders.
Hands that are lined up even with the golf ball.
Hands that are not raised, but allow for a slight angle to be created in the wrists.
The rest is up to you - experimentation and practice to achieve the desired shot at the appropriate time.