What is Long Unwinding?
5paisa Research Team
Last Updated: 04 Mar, 2025 07:27 PM IST

Content
- What is Long Unwinding?
- Example of Long Unwinding in the Futures and Options Market
- When Does Long Unwinding Happen?
- How to Identify Long Unwinding?
- Impact of Long Unwinding on Stock Prices
- Is Long Unwinding Bearish or Bullish?
- Conclusion
In the stock market, prices fluctuate based on buying and selling activity. One common phenomenon traders observe is long unwinding, which occurs when traders sell their existing holdings to close a long position. This is often done to lock in profits, cut losses, or protect gains. This article explores what long unwinding means, when it happens, how to identify it, and its impact on stock prices.
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