Agency risk mainly refers to the risk of losses caused by improper selection of futures intermediaries when investors participate in treasury bond futures trading.
Operational risk refers to the risk caused by human error or computer failure when trading treasury bonds futures.
Market risk refers to the risk of losses caused by drastic changes in the price of government bond futures. The leverage of treasury bond futures is as high as 50 times, which can make small price changes lead to serious equity changes.
Cash flow risk refers to the risk that investors cannot raise funds in time to make up for the deposit. Insufficient margin will lead to forced lightening or liquidation, making the floating loss a real loss.
Liquidity risk refers to the lack of counterparties in the market, the lack of depth in the market and the large bid-ask spread. In 20 19, the liquidity of China's treasury bond futures market improved significantly. The daily average optimal bid-ask spread of the main contracts of 2-year, 5-year and 10-year treasury bonds futures is maintained near the minimum fluctuation price of 1, and the average daily depth of 5 lots exceeds 300 lots.
Legal risk refers to the failure to obtain the original expected profit due to violation of laws and regulations or exchange trading rules in treasury bond futures trading. For example, CICC may take some risk control measures, such as compulsory lightening, which may lead to changes in traders' positions due to laws and regulations.