Term for sale of assets or unwinding positions either to limit loss or to undermine other market participants' positions.
Unwind refers to the specific strategy of "undoing" a buy-write position where the investor would sell the underlying and buy the call to close. Unwind can be used loosely to mean the reversing of any position.
Is the activity which reverses a position. If an investor was long an option spread then he would sell the position to close it. If the investor had a butterfly position in bonds, then she would have to offset each leg or wing to remove the trade. Unwind can refer to Long Liquidation or Shortcovering activities.
Gradually withdrawing a horse from intensive training.
Selling of assets and or instruments to square a position.
1. The closure of an investment position. 2. The reconciliation of an error previously unseen by a brokerage house.