Nonsystematic risk is also called non-market risk or distributable risk. It is a risk that has nothing to do with the fluctuation of the whole stock market or the whole futures market or foreign exchange market and other related financial speculation markets. It refers to the possibility that the price of a single stock or a single futures, foreign exchange varieties and other financial derivatives will fall due to changes in some factors, thus bringing losses to securities holders.

Systematic risk, also known as market risk, is also known as non-dispersible risk. It refers to the possibility that the risk of the owner increases due to the influence and change of many factors, thus bringing losses to the owner. The inducement of systemic risk mostly occurs outside such economic entities. As market participants, such economic entities can play a certain role, but due to the influence of many factors, they cannot be completely controlled, and the fluctuations are generally large, sometimes showing a certain periodicity.