Long unwinding is a term used in the stock market to describe the process of closing or reversing a long position by exiting the long positions or squaring them off. A long position is created when an investor buys stocks with the expectation that the price of the share will go up in the future. Long unwinding can occur when the trader has earned the targeted profit or when there is no movement in the stock that has been bought with the speculation to rise in the near term. Long unwinding in the cash market refers to individuals closing their long positions by selling the securities they had bought. It is characterized by a decrease in the number of buyers and a fall in the security’s price. Long unwinding can also occur when a stock is mistakenly sold, and traders take long positions, wait for the profit, and exit from such positions when they earn some profits.