Economy
How to Control the Risks in Trading?
Risk control is one of the dominant aspects to consider when trading. Of course, if you choose to trade with Exness MT4, the risks get reduced to a minimum. In any case, let’s cast a look at the key steps to take to minimize the risks and calculate their probability when you get into trading.
What’s Risk in Trading and Why You’d Control It Every Second
A trading risk (aka risk in trading) is presented by certain events in the forex market, to subsequently negatively affect the trader.
There may be some changes in the exchange that will ultimately lead to a loss of money.
There are strategies in the forex market that are based on risk management.
Risk at forex trading can be calculated using the following formulas. There are certain formulas and rules for determining risks, for example:
Risk per Trade = Purchase Cost — Stop
And this is the formula for calculating the risk for all trading capital, expressed as a percentage:
Risk = Expected losses in the trade / Equity x 100
This formula will help you comply with the basic rule of risk management, which allows you to risk no more than 2% of your trading capital (or portfolio) per trade.
Risk management is primarily a process of preliminary analysis of all transactions for possible risk and potential profit.
Before making a deal on the stock market (opening a position), the fundamental condition is to determine the risk arising from this.
Control over the risks, or simply risk management, largely determines the likelihood of a trader’s trading success in general, since it allows a competent approach to opening and maintaining positions under risk conditions.
Often, it is precisely the optimization of a position based on the level of risk that is acceptable for a trader that is the main criterion for successful trading.
Frequently, newbies, having no idea about risk management, overestimate the risks and lose their deposit, which often ends in frustration in trading.
Also, without working with risk management, it is extremely difficult to create a successful trading strategy.
Watch News and Stay up to Date
Being guided by fundamental analysis or simply watching news and staying up to date news plays the role of a ’fulcrum’:
- Following the publication of macroeconomic indicators
- Statements of the largest international and
- National financial organizations,
a trader is able to predict a decrease or increase in the rate of a particular currency. This is how all forex professionals work.
But even if a trader is not going to become a professional, he may well define for himself several sources of information that he will use to stay in the know.
The formula for success in the forex market is quite simple. To be in profit, it is necessary to
- Correctly interpret the information received
- Draw the correct conclusions from it, and
- React correctly by opening certain deals.
There are several basic information flows that a trader can use. The most convenient help is the financial news feed, which is equipped with all major online trading platforms.
As a rule, on this tape the specialists of the brokerage company or their partners—business news agencies post in real time all the news that are important for the Forex market.
Stay Stick to the Plan According to Budget
Sticking to the budget you planned is actually one of the fundamental parts of the control over your risks at the forex market.
There are several universal tips for applying risk management in trading that can help improve the trading efficiency of a trader who uses them correctly:
- Before starting trading, it is necessary to draw up a trading plan that describes in detail the trader’s behavior during the trading day, which helps to partially neutralize the emotional component of trading.
- Use only strong signals in trading. You shouldn’t try to trade from a reversal on every random correction.
- It is necessary to limit your losses in each trade and plan the expected profit using stop and take profit orders.
- Do not overexpose losing positions. Stop orders not only help to close a losing trade on time, they are also a kind of indicator of the correctness of the forecast. If the forecast has obviously not been confirmed, one cannot hope for a price rollback over time, otherwise one can get into the opposite trend position and lose the entire deposit.
- Do not try to trade aggressively, especially if you have no experience. It is not by chance that professional traders choose the risk threshold for a transaction at the level of 2% of the deposit—it is best to stick to it until you gain a certain experience in trading.
Each of the tips listed above is applied to the way you distribute your budget in the process of trading. Thus, planning your budget is paramount.
Take Profit-Stop Loss Points
A successful trading system consists of two parts:
- The first is the loss limitation, and
- The second one is the timely profit taking.
Sometimes traders’ strategies assume a strict ratio of the length of positions such as stop and take profit, for example, 1 to 3. Thus, a stop of 10 points will have a take profit of 30.
The ratio can be any, but you should not set too long take profits without a good reason—often the overestimation of price drivers leads to the fact that the trader does not record a solid profit, and the reversal occurs before reaching a long take.
At the same time, it should be remembered that in this case, the take profit must necessarily exceed the stop, since a rare strategy allows a trader to trade without losses, and short stops suggest that, for example, two losing trades can be compensated by one profitable one.
However, in many strategies, the exit point is determined in a different way. Signal trading is one example.
In accordance with this strategy, a trader enters a position by a signal and expects a return signal to exit. In such strategies, the ratio of possible profit and loss is quite large, since the price often passes a significant number of points before reaching the opposite signal.
However, this position has a significant disadvantage: sometimes the return signal is not received at all.
Another strategy involves placing profits near resistance levels, where the likelihood of a reversal is very high. Most often, this option is preferred by experienced traders who are able to correctly determine the levels.
Exnessgroup wishes you successful trading in 2022!
By Adedapo Adesanya
The Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.
The Chairman of the committee, Mr Adetokunbo Abiru, the senator representing Lagos East, who presented the report, stated that the proposed legislation was necessary because the existing National Insurance Commission Act of 1997 had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.
According to the Senate, the decision to change the Commission’s name was informed by the need to eliminate confusion associated with the existing designation and to better reflect the institution’s regulatory mandate within Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against adverse claims arising from the lawful execution of their statutory duties.
However, he noted that the commission’s enabling law had become obsolete, exposing significant regulatory gaps that required urgent legislative intervention.
‘The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the new legislation seeks to strengthen the independence of the commission by empowering it to make regulatory decisions without undue influence in the country’s insurance sector.
According to him, the bill also enhances the commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, issue regulations, guidelines, standards and directives on insurance-related matters, and intervene more effectively in financially distressed insurance companies to protect policyholders and preserve financial stability.
This marks yet another move to strengthen the country’s insurance sector following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) of 2025 and the industry-wide recapitalisation exercise, which will wrap up by July 31.
By Adedapo Adesanya
About 143 companies that successfully passed the technical and prequalification stages of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2025 Licensing Round will, today, compete for 50 oil and gas blocks at the commercial bid conference in Abuja, the final stage in the allocation process for the assets.
The commission said only the prequalified companies have been invited to attend the event, which will hold at the Conference Centre of the Transcorp Hilton Hotel, Abuja, stressing that participation is strictly by invitation.
The commercial bid conference will determine the successful bidders for oil and gas assets located across Nigeria’s producing and frontier basins.
The 50 blocks comprise 16 onshore blocks and 18 shallow water blocks in the Niger Delta, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
According to the commission, the winning bids will be determined through a transparent evaluation process based on clearly defined commercial parameters. These include the signature bonus offered by bidders, the proposed work programme commitment and the level of performance security provided. The final selection will be based on a weighted technical and commercial score.
The licensing round is being conducted under the provisions of the Petroleum Industry Act (PIA) 2021, which requires a transparent and competitive process for the award of petroleum assets.
NUPRC had announced the commencement of the 2025 Licensing Round on November 11, 2025, before opening the online bid portal on December 1, 2025, to enable interested companies to register and participate in the exercise.
To ensure prospective investors fully understood the requirements, the commission organised a pre-bid conference on January 14, 2026, at Eko Hotels and Suites, Lagos. The event provided detailed explanations on the licensing guidelines and bidding procedures to registered participants and other stakeholders.
Registration and submission of prequalification documents closed on February 27, 2026, while the prequalification evaluation was completed on March 16, 2026.
NUPRC disclosed that 286 companies initially submitted applications for prequalification.
Following the evaluation process, 196 companies were cleared to participate in the technical and commercial bid stages.
The prequalified 143 companies eventually submitted a total of 200 bids for the available oil and gas blocks. These companies are now set to compete at the commercial bid conference, where the financial offers will be opened and evaluated to determine the eventual winners.
The licensing round is expected to attract fresh investment into Nigeria’s upstream petroleum sector, boost exploration activities across both producing and frontier basins, increase crude oil and gas reserves, and support the country’s drive to grow production and government revenue.
It also underscores the regulator’s commitment to implementing a transparent, competitive and investor-friendly licensing regime under the Petroleum Industry Act.
By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters following the conclusion of its two-day meeting on July 21, 2026, on Tuesday, maintaining its tight monetary policy stance to curb inflation and support macroeconomic stability.
According to the Governor of the apex bank, Mr Yemi Cardoso, who chaired the committee, the Monetary Policy Rate (MPR), which serves as the benchmark interest rate, remains at 26.50 per cent. The MPC also retained the asymmetric corridor around the MPR at +50 basis points and -450 basis points.
In addition, the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45.00 per cent, while the CRR for merchant banks remains at 16.00 per cent. The committee also retained the CRR on non-Treasury Single Account (Non-TSA) public sector deposits at 75.00 per cent, with the liquidity ratio at 30.00 per cent.
The decision reflects the apex bank’s continued commitment to containing inflationary pressures through a restrictive monetary policy while safeguarding the resilience of Nigeria’s financial system amid ongoing macroeconomic adjustments.
By keeping all policy tools unchanged, the MPC signalled its intention to continue managing excess liquidity in the banking sector and maintain stability in financial markets.
The move is also expected to provide greater policy certainty for investors and businesses monitoring the country’s monetary policy direction.
The latest decision also means borrowing costs are likely to remain elevated in the near term as the central bank continues to prioritise price stability over monetary easing.
Analysts had expected the CBN committee to retain the rate after Nigeria’s headline inflation came in at 15.91 per cent as of June 2026, marking a slight decline from 15.93 per cent in May.
However, even as overall price growth has moderated significantly compared to previous periods, food inflation remains a persistent challenge, accelerating to 17.52 per cent in June.
