---
title: Price Limit Expansion's Impact on Stock Volatility
url: https://www.ml-quant.com/papers/ssrn/4545501/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4545501
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4545501
featured: 2023-08-24
citations: unknown
topic: Derivatives & Volatility
---


# Price Limit Expansion's Impact on Stock Volatility

The research suggests that expanding price limits can either increase or decrease stock volatility, primarily driven by the magnet effect and inherent volatility levels, with the correction effect having a lesser impact.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4545501
- Identifier: SSRN 4545501
- Released: 2023-08-19
- First featured: Quant Letter No. 13 (2023-08-24): https://www.ml-quant.com/issues/2023-08-24/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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