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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


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Basic mechanical unwind tension controls using pneumatics or springs to balance the force of a rotating dancer or rotary web festoon against some type of brake on the unwind shaft.
Their offerings include retrofits or rebuilding of existing unwind equipment, new unwind equipment, elastic thread path optimization including a full line of specialty thread guide rollers, and total process consulting.
Mrs May said: "I watch TV to unwind - I'm not sure a drama about a female Home Secretary is the best way." The Tory leader is known to like shows including Strictly and US crime drama NCIS.
Dreamate Sleeping Aid, PS49.95, from www.prezzybox.com If you find it hard to unwind, and even harder to fall asleep, this wrist accessory will help you visit the land of nod.
| The island of Mauritius | The island of Mauritius Relax and unwind on a Mexico holiday for two SOVEREIGN Luxury Travel (0843 770 4526, www.sovereign.com), offers a saving of up to PS226 on a week at the five-star Now Larimar Punta Cana with prices from PS1,168 per person.
This will certainly appeal to lovers of The Hunger Games, but for ease of comprehension, Unwind should be read first.
Now take off a few wintry layers, Cheryl, and unwind with Tre in the California sun.
An unwind with an optional edge guide, a cut-to-length assembly with an optional slitter, and a take-away conveyor are included with this machine.
THREE in five people in the Midlands who took part in a new survey used alcohol to unwind in the evenings.
"It's a good way to unwind and should have no detrimental effects on performance the next day or the next weekend.
Bebida Beverage Company (OTCmarkets: BBDA) (BeBevCo), a developer, manufacturer and marketer of relaxation and energy drinks, on Monday announced that through its new partnership with Avanti Business Partners it has closed a deal with USA3000 Airlines to offer KOMA UNWIND Relaxation Drink and Shots to its passengers.
Therefore it is still possible to unwind at very high unwinding velocities from packages with sufficiently large smallest radius (as determined by the radius of the tube on which the yarn is wound).