The fluctuation range increased / What effect does the increase of the fluctuation range have on the stock market?

According to Tejarat News, according to the announcement of the head of the stock exchange organization, the fluctuation range is supposed to reach 10% by the end of the year. This increase in swing range can greatly reduce market queues and control them in a way.

On the 6th of May, Majid Eshghi, the head of the stock exchange organization, said that the fluctuation range should be gradually increased. Our goal is to increase the swing range to 10% by the end of 1401.

The fluctuation range of the stock market reached positive and negative six percent since April 29. This one percent change was able to reduce the amount of queues in the market in recent months and in other words control the queues of the capital market. By the end of the year, this range of fluctuation is supposed to reach 10%, which according to the problems of the stock market, this change of the range of fluctuation can generally change the trading process of the capital market.

Increase the fluctuation range to 7%

Peyman Haddadi, head of the Stock Exchange Supervision Department of the Stock Exchange Organization, told the Senate regarding the details of the increase in the range of fluctuations of some listed and over-the-counter companies: based on the reports that the Stock Exchange Organization received from the stock and over-the-counter companies. After the investigations of the board of directors of the stock exchange organization, it was decided that the range of fluctuation symmetrically in the first market of the Tehran Stock Exchange and the Iranian Foreign Exchange will increase by one percent from Monday, September 7, and reach a positive minus 7 percent.

Does the swing range decrease?

Seyed Mehdi Parchini, director of stock exchange supervision of the Stock Exchange and Securities Organization, said: The goal of the board of the Stock Exchange Organization will be to gradually increase the fluctuation range, and the possibility that the fluctuation range will return to five percent is unlikely.

He continued: Now, investors should not wait for the complete elimination of the fluctuation range because this requires preconditions. For example, until the presence of professional institutions in the market is deepened and we do not lead non-professional investors to indirect investment and financial institutions, the conditions will not be favorable for a sudden increase in the range of volatility or its elimination.

Exchange queues are reduced

Bahman Fallah, a capital market expert, said: increasing the range is structurally beneficial to the capital market. This increase shows the maturity and rational behavior of shareholders and the market. Also, as the fluctuation range increases, the emotional behavior and queues of buying and selling in the capital market also decrease.

He continued: The smaller the range of fluctuation is, the more the buying and selling queues will be formed, and finally the emotional behavior of the shareholders based on reading the board. Increasing the scope means increasing the depth and analysis of the stock market.

According to this capital market analyst, the rational behavior of the market is formed with the increase in the range of fluctuations, and the excitement of transactions also decreases.

Referring to the increase in the range of volatility, Fallah said: Currently, the range of volatility has increased and the trend of over-the-counter transactions also shows that the capital market is suffering from a lack of liquidity.