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A deregulated electricity market demands competitive reactive power auxiliary service, so it is necessary to determine the values of reactive power supports from different reactive power sources, according to these values the reactive power auxiliary services can be priced. Here, the concept of effective reactive power capacity is first put forward, and the model of reactive power market is established on the basis of global optimal compensation, thus, the reactive power market is divided into two markets, i.e., the reactive power capacity market and the electricity quantity market of reactive power. It is emphasized that the values of reactive power supports should be determined according to their contributions to the stability and security of power system respectively. The correctness of the presented method is proved by the results of sensitivity analysis. Taking the IEEE-30 bus system and Sichuan power grid for examples, the simulation and the calculation for the presented method are conducted, the results of the calculated prices of reactive power show that the presented method is feasible and reasonable.