What is short covering and long unwinding?
Photo Credit: Courtesy of 3DStockPhoto (woman with short skirt and long hair image)
On the contrary if we sell a stock expecting the price to go down it is called Short Position. Selling the stock that is already bought is long unwinding and Buying a stock that has been already sold is Short covering. ... Long Unwinding: Close out position of Long, i.e Selling the stocks to exit the long position.