Unwind a trade


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Unwind a trade

Reverse a securities transaction through an offsetting transaction in the market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved