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 Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
