The electricity market reform all around the world stands for the development direction of the electric power industry. With the disintegration of the State Electric Power Company and the separation of power plants from power grid in China, the electricity market reform has being generally outspreading. Among various problems brought by the reform, the trade mode and method of electricity market is the basic one and relate to smooth progress of electricity market reform and sustainable development of the electric power industry in China. It has been deeply understood that the importance of reasonable designing trade mode and principle after the happening of electricity market crisis in California US. There are many differences between China and foreign countries in electric power industry actualities and exterior market environment, so that the establiment of electricity market in China should learn the experience of other countries as well as consider the actualities of our nation. Currently the construction of six regional electricity markets is an emphasis of electricity market reform in china, and the national electricity market will be built after nationwide interconnection of power grid. The regional and national electricity markets may adopt the structure of two-level electricity market which is much different from other countries, the trade mode and method for the two-level electricity market is need to be studied. In this dissertation, the trade mode and method for the two-level electricity market paper is studied preliminarily based on the actualities of electric power industry and exterior market environment in China. Firstly, the backgrounds of electricity market reform all around the world and the progressing actualities in our country are reviewed, the significance and content of this subject are introduced according to that two-level electricity market will be adopted in the establishment of electricity markets in China. In chapter 2, basing on the introduction of large-scale system thoery, the layered and divisional principle of electricity market and hiberarchy of electricity market in China are discussed. A trade mode for regional layered electricity market is proposed based on the analysis of other trade modes, in which electric power resource optimal allocation and power grid safe operation are considered. In chapter 3, option theory is imported into electricity market and the electricity option and its main modes are introduced. The economic theory of electricity option and various material applications are discussed. According to the characters of two-level electricity market, in chapter 4 a distributed method for day-ahead trade schedule in two-level electricity market is proposed. It fully make use of the calculation resource of all electric power dispatching and trading centers, treats computer systems of trading centers as a distributed trade calculation platform and assigns calculation task by ability of the centers, finishes the day-ahead trade schedule by distributed cooperative calculation. The trade optimization calculations as well as the security check are considered in the method. Finally the simulation calculation is processed and results shows that the proposed method is effective. According to the actualities of the regional power grids in China, in chapter 5 it is discussed the trade modes of AGC ancillary service in the layered regional market. The AGC control methods and its development direction of the regional power grids in China are introduced, and then the cost of AGC ancillary service is analysed. There are two basic trade modes for AGC ancillary service: long-term contract and competing auction. For long-term contract, the cost compensation method of AGC ancillary service is proposed. For competing auction, the calculation methods of AGC regulating capacity, the decision methods and organasation methods of AGC ancillary service trade are discussed. In chapter 6, the model of electricity market operation systems based on multi-Agent technology and detailed structure design are proposed. From view of power system security and minimal regulating on system operating, it is presented that the real-time trade mode based on multi-Agent negotiation, detruded the linear equibrium solution for the mode by game equalibrium theory, designed the negotiation algorithms for Agents. Finally the simulation calculation for this method is processed and results show that the approach is effective. At the end of this dissertation, the main results of reseach are summarized and the further work is pointed out as well.