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 ?
AS) has said that, together with the Dutch State, it has completed the unwinding of the Illiquid Assets Back-Up Facility (IABF).
Swap Negotiators acts as an intermediary between borrowers and their banks on all types of swap transactions including executing, modifying, unwinding, and assigning.
In the part of the yarn that slides on the package (between the unwinding and lift-off point) f is the density of forces with which package resists the motion of the yarn.
Key words: mathematical model, cylindrical packages, winding angle, yarn unwinding, angular velocity
FRBNY), who were monitoring the situation on an ongoing basis, that the act of unwinding LTCM's portfolio in a forced liquidation would not only have a significant distorting impact on market prices but also in the process could produce large losses, or worse, for a number of creditors and counterparties, and for other market participants who were not directly involved with LTCM.
There was broad agreement that the main goal of any strategy for unwinding such interventions should be to create price stability, fiscal sustainability, and a new economic landscape that is much safer than currently exists.
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 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.
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?
think they may have spotted the answers--bends and a partial unwinding of the DNA's characteristic double helix in the damaged cells.
NASDAQ:CLDN) today reported the unwinding of a zero-cost collar transaction by its CEO dating back to February 2006.