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 ?
In this equation one has to insert the winding angle in the layer which is currently being unwound.
While Fitch has always unwound the impact of CNA's finite reinsurance covers in its analysis, the commutations are still viewed favorably as they reduce reinsurance credit risk, lower interest expense on funds withheld, and provide for greater transparency of results.
They allow construction of packages that can be unwound at higher unwinding speeds.
All stock that had been tendered to TSPartner management has been forfeited and the entire transaction will be unwound.
CHICAGO -- Ed Bugos, editor of the Goldenbar Report newsletter, says that the bullish play the gold market saw from anxiety over the Iraqi political elections has unwound at month end.
The marketing of GAITS and C-GAITS products ceased prior to 2003 and the five GAITS transactions were all either unwound or restructured during 2003.
On September 21, 2004, present management of Goldtech filed a Form 8-K with the Securities and Exchange Commission and issued a press release to the effect that the acquisition of certain assets from Goldtech Mining Corporation of Washington ("Goldtech-WA") be unwound and the shares issued in connection with the transaction be cancelled.
Additionally, effective June 15, 2004 BEV unwound its off-balance sheet A/R facility (Beverly Funding Corp.
And while the pessimistic sentiment has unwound some over the past several months, it remains high enough that more unwinding could cause INVN to continue higher.