Trading Basics

Long-Unwinding

Existing bullish (long) position holders closing out their positions — can drive a price fall even without fresh bearish conviction, and typically shows as falling OI.

Long-unwinding happens when traders holding existing bullish (long) positions close them out. A price fall driven mainly by long-unwinding, rather than fresh selling, typically shows up as falling price alongside falling Open Interest — a weaker signal than falling price with rising OI.

See the full four-combination price-OI framework in What Is Open Interest? How to Read Market Sentiment.