Increased market risk refers to a heightened probability of substantial financial losses or gains in a short period. This risk is characterized by:

1. Higher volatility

2. Uncertainty and unpredictability

3. Potential for sudden and significant price movements

4. Increased likelihood of market crashes or flash crashes

5. Greater exposure to potential losses or gains

6. Difficulty in accurately assessing market value

7. Increased sensitivity to news and events

8. Amplified impact of market sentiment and emotions

9. Reduced market efficiency and increased market instability

10. Higher stakes for investors, traders, and market participants

Increased market risk can arise from various factors, including:

1. Economic and geopolitical uncertainty

2. Central bank actions and monetary policy changes

3. Market structure and infrastructure issues

4. Algorithmic trading and high-frequency trading strategies

5. Investor sentiment shifts and market psychology

6. News events and market announcements

7. Market overload and congestion

8. Regulatory changes and market oversight issues

In such an environment, investors and market participants must be more vigilant and proactive in managing risk, as the potential for significant losses or gains increases. Effective risk management strategies and robust market infrastructure are crucial to navigating these conditions.