unwind

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Unwind

1. See: Close a position.

2. To correct a mistake. For example, if an investor instructs his/her broker to sell a security and the broker instead buys it, the broker must re-sell the security, and pay the client what he/she may have lost in the mistake. This process is known as unwinding.

unwind

1. To close out a relatively complicated investment position. For example, an investor who practices arbitrage by taking one position in stocks and the opposite position in option contracts would have to unwind by the date on which the options would expire.
2. To rectify a transaction in which a mistake has been made. For example, because of a misunderstanding, a brokerage firm may have bought the wrong stock for a customer. The firm must then unwind the erroneous trade by selling the stock just purchased and buying the correct stock.
References in periodicals archive ?
Delta ModTech offers jumbo roll unwinds with roll lift features, low tension unwinding, and unwinds with steering.
These two parameters are approximately constant during the unwinding, so they are less important.
We study the unwinding of yarn from a cylindrical package (Figure 1).
He added the terms of the unwinding of Concert were "slightly better" than the market had been afraid of - especially regarding the Canadian venture - although the write-down was a touch higher than expected.
AS) has said that it has completed the agreement with the Dutch State on the unwinding of the Illiquid Assets Back-up Facility (IABF), as announced on November 1, 2013, Thomson Reuters has reported.
The often have a small linear festoon that provides position feedback to the drives for smooth unwinding.
The derivation of the formula which relates the angular velocity [omega], the angles [alpha] and [phi], as well as the unwinding velocity V and the effective radius of the conic package at the lift-off point c, is more involved as in the case of cylindrical package, since one cannot use a simple geometrical argument in the present case.
Abstract: Stability of the yarn unwinding directly affects the efficiency of the textile production process and the quality of the final product.
A separate unwinding station designed to receive rolls of large diameters (1300 mm maxi diameter, 500 Kg) is driven to minimize tension and elongation on light web nonwovens such as 15gsm.
And do today's unprecedented large and growing global payment imbalances not carry with them the risk of a disorderly unwinding of those imbalances, which might intensify the protectionist policies that are all too much in evidence?
Because individual net payments are far smaller than the gross value of the payment obligations to be settled between and among the parties, the effect of the failure of one of the parties in a net debtor position to settle its payment obligation is far smaller than the effect of unwinding all of the underlying transactions.