Burginvest

Unwind

アンワインド Capital Flow ✓ Verified Citations Market Practitioner Term
<Definition> Unwind refers to the process of dismantling an already-established and held position, trade, or trading strategy back down from its assembled state, through transactions that dissolve its constituent parts. The word originally comes from general English usage, where it means to make something that has been wrapped or coiled become straight, flat, or loose again; its use in financial markets applies this sense of "undoing" to existing positions.
日本語
<定義> アンワインド(Unwind)とは、既に組成・保有しているポジション、取引、または取引戦略を、その構成要素を解消する取引等によって、組み上げた状態からほどいていくことをいう。この語は元来、巻かれたものをほどき、まっすぐ・平ら・緩んだ状態に戻すことを意味する一般的な英語表現であり、金融市場における用法は、この「ほどく」という意味を既存のポジションへ適用したものである。

<Mechanism>

How an Unwind WorksHow an unwind works. (1) Several trades are combined and held as one position. (2) Three factors sit side by side. A) Trading objective achieved: a profit target or the original goal is met. B) Declining economic rationale: higher carry cost, fewer opportunities, changed conditions. C) Risk management: margin calls, risk limits, funding strain. The three are not mutually exclusive and can act together. (3) Offsetting trades, repaying borrowings and terminating contracts close each constituent trade, and the position closes.How an Unwind Works(1) The established positionSeveral trades combinedand held as one positionOne positionTrade 1Trade 2Trade 3(2) Factors leading to an unwindATrading objectiveachievedProfit target ororiginal goal metBDeclining economicrationaleHigher carry costFewer opportunitiesChanged conditionsCRisk managementMargin callsRisk limitsFunding strain* The three are not mutually exclusive and can act together(3) Executing the unwindOffsetting trades, repaying borrowings andterminating contracts close each tradeTrade 1Trade 2Trade 3The position closes

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