Unwind a trade

Also found in: Dictionary, Thesaurus, Encyclopedia.

Unwind a trade

Reverse a securities transaction through an offsetting transaction in the market.


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.