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 ?
During unwinding the lift-off point moves up and down the package.
These two parameters are approximately constant during the unwinding, so they are less important.
BT said it would take a charge of pounds 1.2bn following the unwinding - as well as incurring a pounds 200m charge covering redundancies.
Therefore, depending on the outcome in Redlands, the unwinding of the Columbia/Arlington joint venture may be the tip of the iceberg.
(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.
Like other areas of the narrow web printing industry, rewinding and unwinding equipment has evolved by leaps and bounds.
Dutch financial services company ING Groep NV (INGA.AE) (NYSE: ING) (ING.AS) has said that, together with the Dutch State, it has completed the unwinding of the Illiquid Assets Back-Up Facility (IABF).
When the yarn is being unwound from a cylindrical package, the angular velocity of the yarn forming the balloon depends on three parameters: the package radius, the unwinding velocity, and the winding angle.
We demonstrate a mathematical model for simulating the unwinding from cylindrical and conic packages.
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.
In unwinding such trades, they convert the money back to yen.
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?