What Is Capitulation in Finance and Investing?

Capitulation: What It Is in Finance and Investing. Is surrender a synonym for capitulate? Surrender and capitulation are not synonyms. Capitulation is the act of giving up, while surrender is the act of yielding. Capitulation typically happens when one is defeated, while surrender can happen even when one is not defeated. What is an example of capitulate? The definition of capitulate is to surrender or give in, especially after a long resistance.

An example of capitulate would be if a company finally gave in to demands from its employees after a long and difficult negotiation process.

How do you use capitulation in a sentence?

In technical analysis, capitulation is a signal that indicates that a trend is coming to an end. It is typically marked by high volume and a sharp price decline. Capitulation signals that investors are giving up on the current trend and are selling their positions. This can be a sign that a reversal is about to occur. What is a capitulation sell off? A capitulation sell off is a situation where investors become so pessimistic about the future of a security or the market in general that they sell their positions en masse in order to avoid further losses. This selling pressure can lead to a sharp decline in prices, which can then trigger even more selling as investors rush to get out before prices fall even further. Capitulation sell offs are often seen as a sign that the market has reached a bottom and is about to start rebounding.

What is the difference between capitulation and surrender? There is a big difference between capitulation and surrender in the financial markets. Capitulation is when investors give up all hope for a stock or market and sell their positions, regardless of price. This is usually seen at the end of a long-term trend, when prices have fallen sharply and there is little chance of a recovery. Surrender, on the other hand, is when investors sell their positions in order to avoid further losses. This can happen at any time during a trend, but is most common near the end.