The securities market is the product of the highly developed commodity economy and credit economy, and is an advanced organizational form in the market economy. The reason why the securities market is said to be a high-risk market is because securities prices are highly volatile and uncertain, which is determined by the nature of securities and the complexity of the operations of the securities market. ①The nature of securities determines the uncertainty of security prices. In essence, securities are a symbol of value, and their prices are the market’s monetary discount of expected future returns on capital. Their expected returns are affected by interest rates, exchange rates, inflation rates, industry prospects, operator capabilities, personal and social psychology. It is difficult to estimate accurately due to the influence of various factors such as securities, which is reflected in strong uncertainty in prices. This essential attribute of securities determines that the securities market that uses it as a trading object has a high risk from its inception. ②The complexity of securities market operations leads to the volatility of security prices. The operation process of the securities market is actually a cyclical process between market supply and demand from imbalance to balance, and from balance to imbalance. However, what is different from other commodity markets is that the supply and demand entities of the securities market and the factors that determine changes in supply and demand The factors and mechanisms are more complex. From the perspective of market participants, they range from governments to enterprises, from institutions to individuals, and are of all kinds. Their positions in the market, their familiarity with the market, and their requirements for the market vary widely. From the perspective of market composition, including issuers, trading entities, intermediaries, etc., they represent different interest groups and have different internal operating mechanisms. From the perspective of trading tools, there are bonds, stocks, funds and financial derivatives, etc. Various tools are both self-contained and interconnected in terms of nature, trading methods, price formation mechanisms, etc. In this environment, the prices of securities markets have become more elusive, fluctuating and even plummeting. ③Speculative behavior exacerbates the instability of the securities market. In the operation process of the securities market, investment and speculation go hand in hand. The pursuit of profits by speculative capital has intensified market price fluctuations. When speculation exceeds normal limits and becomes excessive speculation, market risks emerge. For example, in the late 1920s, there was a wave of popularization of investment in the U.S. stock market. Investors only needed to pay at least 10% margin to buy stocks. The conditions for credit transactions were wide and the scale was unprecedented. Stock prices soared day by day, and the market was speculative. The Dow Jones Index rapidly reached its highest point of 386 points in 1929 from 120 points in 1926. Eventually, wild speculation led to an even more disastrous plunge, with the Dow down 85% by 1932. ④ It is difficult to control risks in the securities market. Objectively speaking, the securities market covers a wide area and is highly sensitive. Many changes in social and cultural life will have an impact on the accumulation of market risks. Any major political or economic events may trigger crises. It is difficult to comprehensively analyze all risk factors in the market. Grasp, control. Subjectively, due to the limitations of regulatory capabilities and self-discipline, it is difficult to put an end to all kinds of irregular and unself-disciplined behaviors that are willing to take risks to gain profits, and the discovery and correction of violations require a process. Examples such as the collapse of Barings Bank in the UK due to a trader's extensive speculation in Nikkei futures, and the financial difficulties and eventual liquidation of Hong Kong's Peregrine Company due to its large holdings of Indonesian bonds, all illustrate that risks in the securities market are ubiquitous and present at all times. . ⑤ Securities market risks have a greater impact and destructive power on society and the economy. The securities market is the focus of the economy and society, and securities market risks are the concentrated expression of various economic contradictions and problems. With the development of global economic integration, capital can flow around the world, and the securities market has developed from a local and regional market to a national and even international market. Changes in international politics and economics can be rapidly spread and expanded around the world through the chain of the securities market. Compared with mature markets, my country's securities market started late and is still in its infancy. The quality of market participants such as listed companies and securities companies needs to be improved. Investors' risk awareness is relatively weak. Supervision methods need to be improved. The experience in managing the market is not yet mature. The risks hidden in the market are greater. Therefore, we must fully understand the prevention and control measures. It is necessary to control market risks and regard risk prevention and control as an important and unremitting task in the process of market construction. Various types of risks in the securities market Generally speaking, when investors enter the market, they may encounter the following types of risks: systemic risks, non-systematic risks, and transaction process risks.