Definition and Operational Methods of "T+0 Unwinding"

China's A-share market operates on a T+1 settlement system, meaning stocks bought today can only be sold the next day. "T+0 Unwinding" simulates intraday trading (T+0) by buying and selling the same stock within one day to reduce holding costs and exit losing positions.

I. Standard T+0 Unwinding

1. Prerequisite: Hold a certain amount of the target stock.

2. Steps: Buy additional shares at a low price during intraday dips (without exceeding original holdings), then sell the newly bought portion after a price rebound, maintaining total shares.

3. Outcome: Profits from intraday price differences lower average costs. For non-losing positions with upside potential, doubling purchases can maximize gains.
   
   

II. Reverse T+0 Unwinding

1. Sell High First: Anticipating a downturn, sell shares at a high price early and repurchase later at a lower price.

2. Methods:

   • Good News Scenario: Sell during a sharp gap-up, then buy back after a pullback ("sell high, buy low").

   • Downtrend Scenario: Sell partial holdings during intraday declines and repurchase at lower prices (suitable for short-term volatile stocks).

   • Profitable Positions: Sell overbought shares before a correction and repurchase post-dip to lock in profits.

Key Difference: Standard T+0 requires buying first (needs spare cash), while reverse T+0 involves selling first (works even with fully leveraged positions).