What effect does increasing the volatility range have on the stock market?

According to Tejarat News, according to the head of the stock exchange organization, the range of fluctuations is expected to reach 10% by the end of the year. This increase in the range of fluctuations can greatly reduce the market ranks and somehow control them.

On May 26, Majid Eshghi, the head of the Exchange Organization, said about the fluctuation range that the fluctuation range should be gradually increased. Our goal is to increase the amplitude of the fluctuation to 10% by the end of 1401.

The range of stock market fluctuations reached positive and negative six percent from April 19. This one percent change has been able to reduce the number of market queues in recent months and, in other words, control the capital market queues. This volatility is expected to reach 10% by the end of the year, which due to the problems of the stock market, this change in volatility can change the general trend of capital market transactions.

Decrease of stock ranks with fluctuation range

Mohammad Mehdi Samavati, an economist, told Tejarat News: “Changing the range of the swing was a good experience for the capital market and helped balance the number of queuing days.” Overall, it had a positive effect on stock trading.

He continued: Of course, the market itself was not interested in buying and selling during the period. In my opinion, this experience is still incomplete and it remains to be seen whether this trend of equilibrium will remain in the queue in large markets or whether we will have to wait for long queues again.

“Increasing the range of fluctuations can have a positive effect on the trend of capital market transactions,” Samavati explained. But the main condition is that this increase in volatility extends to other markets, including the secondary market and.. At present, this test has occurred only in the first panel of the stock exchange and OTC, and if the increase in the range of fluctuations reaches the second panel of the stock exchange and OTC, the market will probably react logically.

The economist concluded: “Increasing volatility in the long run will help speed up capital market adjustments and reforms.”

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