A promise that did not come true! / The fate of the fluctuating range in ambiguity – Tejaratnews

According to Tejarat News, it was the first months of this year that the Board of Directors of the Stock Exchange Organization announced that the fluctuation range will increase by one percent each quarter. For the first time in the spring season, the fluctuation range increased by one percent from positive and negative 5% to positive and negative 6%.

After this increase, it was in the last month of summer that the stock exchange organization increased the fluctuation range of the primary markets of the exchange and over-the-counter markets to positive and negative 7%; However, in the second half of the year, this increase in the fluctuation range was not implemented and the fluctuation range is still seven percent.

Most of the experts believe that the range of volatility is one of the factors of the capital market’s depression, and by removing the range of volatility and reducing queues, the conditions of the stock market will also improve.

Majid Eshghi, head of the stock exchange organization, has implied that the range of volatility has not changed and said: “The proposal of colleagues in the stock exchange and non-exchange was to implement the changes in the range of volatility in the next stage simultaneously with the changes in the classification of markets. Based on this, the symbols are moved in the markets and different ranges of fluctuation have been proposed for different classes.

He added: “This decision will be implemented in the first 3 months of the next year, and we will try to increase the fluctuation range to the point where there will be no buying and selling queues in the market. If the trading systems allow dynamic swing range to be formed, the swing range will be removed, but currently the trading system does not allow this.”

Bahman Fallah, a capital market expert, had previously told Tejarat News about the fluctuation range that “the lower the fluctuation range is equal to the formation of logical buying and selling queues, ultimately the emotional behavior of shareholders based on reading the board; “Increasing the scope means increasing the depth and analysis of the stock market.”

Remove swing range?

Most experts and economic activists believe that removing the fluctuation range is beneficial to the capital market, because it reduces the queuing phenomenon. On the other hand, some market analysts say that it is not possible to change the fluctuation range in the current situation, so it is better to make the fluctuation range dynamic.

Currently, the capital market is in very good conditions, and fulfilling the promises and improving the infrastructure can increase the confidence of the shareholders in the market. The result of increased confidence is the entry of liquidity into the market as a whole and the real growth of the stock market.

Looking at the parallel markets of the stock exchange, it can be said that there is currently a heavy floating liquidity in the market and if the stock exchange organization does something to increase the confidence of the shareholders, it can be the most successful investment market at the end of the year.

Finally, it should be emphasized that fulfilling the promises and changing the fluctuation range can help to improve the conditions of the capital market and the entry of stray liquidity into the stock market.