Effective risk management is paramount in the world of forex trading, and Giannis Nikola, Chief Trading Risk Manager at FinPros has shared his insights with fintechview in an exclusive interview.
What is risk management in forex trading?
Forex risk management is one of the most important topics that you must master to be a successful trader. As a trader you want to make money and in order to make money you have to learn how to manage risk and avoid potential losses that will hurt your trading journey or career. So forex risk management in simple words is learning how to control your losses in order to have a chance of being profitable in the long run. When you trade without risk management rules in place you are in fact gambling. Key elements in forex risk management is identifying, and mitigating the various types of risks that trader face in the markets such as price volatility, over leveraging, high exposure, and liquidity. The key is to preserving capital and ensuring long-term profitability by taking decisions like setting stop-losses, controlling position sizes, and maintaining a disciplined approach to trading. At FinPros, we view risk management not as a safety net, but as a core component of successful trading.
Which are some of the common forex risk management mistakes to avoid?
Below the most common mistakes of traders are doing during their trading journey
- High leverage – High leverage most of the times is the trader’s enemy, trading with excessive leverage can amplify both gains and losses.
- No setting stop losses or Take profits– One of the most common mistakes of traders is not setting stop losses or take profits to limit their losses or taking profits increasing the probability to miss a key level.
- Emotional trading – Letting fear or greed drive decisions instead of strategy.
- Over trading – A common error is risking too much on a single trade to make more.
- Rebound trading – Attempting to recover losses from a prior period of losses, usually leads to greater risks and further drawdowns.
At FinPros our educational material focuses on the mistakes and is a great source especially for new traders to learn and adapt.
Which are the best forex risk management strategies?
Each trader can develop his/her own risk management that fits his/her trading style, but some of the most common are the below
- Setting risk reward ratio: How much you willing to lose per trade. Usually, the most common risk reward ratio is 1:3
- Stop Loss/Take profits: To book profits or limit losses!
- Position Sizing Ensure consistency and reduces overexposure.
- Limit Leverage: Most professional clients are trading with low leverages.
- Psychological Discipline: Stick to your trading plan.
At FinPros, we provide tools like risk calculators and real-time analytics to support these strategies.
Why is it suggested to diversify your portfolio when trading online?
Diversification helps reduce overall portfolio risk by spreading exposure across different instruments, asset classes, or trading strategies. Currencies can be impacted by macroeconomic shocks, political instability, or market sentiment. If all your capital is concentrated in one area, you’re vulnerable. A diversified portfolio helps cushion the impact of losses in one area with gains in another, creating a more stable growth trajectory. At FinPros we are offering a wide range of asset suitable for creating a diversified portfolio that will reduce your risk of concentrating in one area
If all your capital is concentrated in one area, you’re vulnerable. A diversified portfolio helps cushion the impact of losses in one area with gains in another, creating a more stable growth trajectory.
What services do you offer at FinPros and what’s your value proposition?
FinPros offers multi-asset trading with competitive pricing, advanced execution technology, and robust risk management tools. Our value proposition lies in being on offering an exceptional service suitable for the needs of each trader. Our tailored made solution can accommodate the needs of every trader that will join us. Also, we are a multi-regulated broker with institutional-grade infrastructure, designed to serve both retail and professional clients. We provide a transparent trading environment, lightning-fast execution, ensuring traders have the confidence and control they need.
How do you mitigate the risk to ensure clients’ funds are safe?
Client fund safety is non-negotiable. We hold client funds in segregated accounts with tier-1 banks, strictly separated from company capital. Additionally, we comply with international regulations and conduct regular internal and external audits. Our negative balance protection policy ensures clients never lose more than their initial investment and lastly our advanced exposure monitoring tools and scenario-based stress testing models prepare us for unexpected market shocks, ensuring operational stability.
What’s coming up next for FinPros?
FinPros Group, founded in 2021 by industry veterans with decades of experience and our mission is to empower traders at every level—from beginners to institutions—through advanced trading platforms, next-generation fintech, and unwavering regulatory compliance.
We’re constantly optimizing our services and moving towards AI and fintech solutions that will enhance traders experience.
FinPros was recently honored with the “Most Reliable Execution Platform 2025” award at the Forex Traders Summit Dubai, presented by SmartVision—an achievement that stands as a strong testament to our ongoing efforts. This recognition highlights our steadfast commitment to providing ultra-fast execution, competitive trading conditions, and a transparent environment, ensuring our clients always benefit from the best pricing at the right time.
In the coming months, we’re expanding our platform capabilities with enhanced analytical tools, deeper liquidity access, and new educational resources tailored for both novice and seasoned traders. We’re also focused on building strategic partnerships, hosting international finance events, and strengthening our presence in key global markets—all while staying committed to delivering a secure and forward-thinking trading experience.
who is who
Giannis Nikola is a professional with more than 12 years in the forex industry, currently serving as the Chief Trading Risk Manager at FinPros, based in Limassol, Cyprus. With a robust background in trading and risk management operations, he has held pivotal roles such as Chief Dealer, Head of Dealing, and Head of Execution/Dealing. His career trajectory includes significant contributions at CMTrading, where he led the Dealing Department for nearly five years, playing a crucial role in the company’s growth and operational excellence.
Giannis is committed to continuous professional development. He is currently an Associate Member at The Chartered Institute for Securities & Investment (The CISI), holder of CySEC Advance certificate and a Certificate member of Institute of Risk Management (IRM).