According to Tejaratnews, the range of fluctuations is the price range of the ceiling and the floor, which can determine each share in each working day, and the price can only move in this range. In principle, this range is the range allowed for stock price fluctuations.
Last week, the fluctuation range reached a positive and negative range of six percent, and according to the head of the stock exchange organization, this range will reach a positive and negative range of 10 percent by the end of the year.
Experts believe that this change in the range of fluctuations can push the stock market higher in the long run.
Payam Elias Kurdi, a stock market expert, explains: Changing the range of volatility has two advantages. First, it increases market liquidity, and second, it balances the buying and selling ranks.
“With a six percent change in volatility, there will be little change in the market,” he said. But the stock market liquidity is slowly increasing in a balanced way.
Eliaskordi explains the second advantage of the oscillation range: it deceives people’s buying and selling ranks. These queues caused some stocks to look good or some stocks to look bad.
The amplitude of the oscillation reaches 10%
Majid Eshghi, head of the stock exchange organization, told IRNA: “According to reports, if the amplitude of the fluctuation is accompanied by a positive effect.” The amplitude of the oscillation must inevitably increase gradually. Of course, no final decision has been made to increase the fluctuation range to 10%, but our goal is to increase the fluctuation range to 10% by the end of 1401.
Referring to the elimination of volatility, Eshghi states: “Complete elimination of volatility requires requirements that in the current market situation, the conditions for its implementation are not provided.” In the long run, we are going to discuss the dynamic fluctuation range so that the fluctuation range changes according to the market situation. In this way, while there are restrictions, the range of volatility will be open, along with the discussion of trading manipulation and monitoring can be applied.
He adds: Dynamic oscillation amplitude is a logical model for oscillation amplitude. This action requires systems that the authorities are trying to set up. It seems that the use of these systems will not reach this year and for this year we have put on the agenda a gradual increase of the oscillation amplitude, but for the long term we will implement a dynamic oscillation amplitude.
What is the dynamic oscillation range?
The head of the stock exchange organization explains about the oscillation amplitude: Dynamic oscillation amplitude is considered as open oscillation amplitude, but it will definitely be controlled. This means that if the company’s stock grows above the specified amount, there will be an interruption in the symbol’s transactions in order to create transparency. In the world, too, it is not the case that the amplitude of fluctuation is completely open. In this regard, the role of marketers is very important and should play a key role. We also announced last week that if traders have the ability to control stocks, we will reversal the volatility range up to twice the specified volatility range at the request of the market.
It seems that changing the amplitude of fluctuations in the stock market will also change the market in the long run and make this market bullish.