Unwind has multiple meanings depending on the context. Here are some definitions from various sources:
- To cause to uncoil, wind off, or unroll.
- To relax and allow your mind to be free from worry after a period of work or some other activity that has made you worried.
- To disentangle or disengage, untwist.
- To close out a typically complex or large trade, or correct a trading error.
- To undo or loosen from or as if from a coiled condition, to disentangle.
Examples of how to use the word "unwind" include:
- She unwound some thread from the spool.
- Music helps me to unwind.
- To unwind ones legs from around the stool.
- If an investor takes a long position in stocks while at the same time selling puts on the same issue, they will need to unwind those trades at some point.
- To unwind a rolled bandage, to unwind a coiled rope.
In summary, "unwind" can mean to uncoil, relax, disentangle, or close out a trade.