Credit risk: Credit risk on account of default by counter party: This is very low or almost zeros because the Exchange takes on the responsibility for the performance of contractsMarket risk: Market risk is the risk of loss on account of adverse movement of price.Liquidity risk: Liquidity risks is the risk that unwinding of transactions may be difficult, if the market is illiquidLegal risk : Legal risk is that legal objections might be raised; regulatory framework might disallow some activities.Operational risk:Operational risk is the risk arising out of some operational difficulties, like, failure of electricity, due to which it becomes difficult to operate in the market.