Long Unwinding Lecture Notes

Jul 11, 2024

Long Unwinding

Definition

  • Long unwinding refers to a situation where traders and investors start to sell their previously held long positions in financial assets such as stocks or futures contracts.
  • This action can lead to a decrease in:
    • Volume
    • Open interest
    • Price

Causes and Effects

  • Causes: Weakening confidence in the asset's further price appreciation.
  • Effects:
    • Traders: Capture profits accumulated during the asset's rise.
    • Market: Reduction in exposure to potential losses in a declining market.

Tools and Resources

  • Streak Scanner: Used to easily scan for contracts witnessing long unwinding.
    • Visit: scanners.dost.streak.tech
    • Search: Long unwinding
    • Select: Preferred scanner
    • Links: Check the description or comments for the scanner link.

Disclaimer

  • The information is for educational purposes only.
  • It should not be construed as trading or investment advice.