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What is Long Unwinding?

long unwinding

Long unwinding is a term used in trading to describe the sell of positions or securities that have been held for a longer time.

A long position is when you purchase a stock or other security in the hopes of seeing a rise in the near future.

Unwinding means selling or offloading your position.

It makes no difference whether you sell for a profit or a loss. Long unwinding is the term used to describe the process of leaving a long place.

Long unwinding occurs when traders believe a stock’s or security’s price is approaching its point of resistance, or when the bullish view on it has reached a saturation point.