June 2023


Risk and Reward: Managing Volatility in Online Currency Trading

Online currency trading offers exciting opportunities for traders to participate in the dynamic foreign exchange market. However, with great potential rewards come inherent risks. Volatility, the measure of price fluctuations in currency pairs, is a vital characteristic of the forex market. Managing volatility effectively is crucial to successful trading and risk management. This article will explore various strategies and techniques to navigate and mitigate volatility in online currency trading.

Understanding Volatility in the Forex Market

When forex trading UK, volatility refers to the rapid and significant price movements experienced by currency pairs. Various factors influence it, including economic indicators, political events, market sentiment, and global economic conditions. Understanding the nature and causes of volatility is essential to make informed trading decisions.

Assessing Risk Tolerance

Before engaging in online currency trading, it is crucial to assess your risk tolerance. Risk tolerance is the level of risk you are comfortable with and can afford to take. Consider your financial situation, trading objectives, and emotional capacity to withstand potential losses. By understanding your risk tolerance, you can establish appropriate risk management strategies.

Risk Management Techniques

1. Setting Stop Loss Orders

A stop-loss order is a predetermined price level at which a trade is automatically closed to limit potential losses. By setting stop-loss orders, traders can protect their capital and minimise downside risks. Determining an appropriate stop loss level is essential based on the currency pair’s volatility, your risk tolerance, and the trading strategy employed.

2. Implementing Take Profit Orders

Take profit orders allow traders to lock in profits by automatically closing trades when a predefined profit target is reached. This technique helps prevent potential losses due to market reversals. By setting realistic profit targets based on technical analysis, fundamental analysis, or a combination of both, traders can secure profits and avoid exposing their positions to excessive market volatility.

3. Diversifying Currency Pairs

Diversification is a risk management strategy involving trading multiple currency pairs instead of focusing on one pair. Different currency pairs exhibit varying levels of volatility, correlation, and sensitivity to market events. By diversifying your portfolio, you spread your risk across different pairs, reducing the impact of volatility on your overall trading performance.

4. Position Sizing and Leverage

Carefully determining the appropriate position size and leverage is crucial in managing volatility. Position sizing refers to the amount of capital allocated to each trade relative to the overall trading account. Considering the potential risk involved, it is essential to allocate a reasonable portion of your account to any single trade. Similarly, leverage amplifies both potential profits and losses. Using leverage conservatively and in line with your risk tolerance is vital to avoid excessive exposure to market volatility.

Technical Analysis in Volatile Markets

Technical analysis is a valuable tool for traders to analyse price patterns, trends, and market sentiment. Technical indicators can provide insights into potential entry and exit points in volatile markets. Utilising indicators such as moving averages, Bollinger Bands, and oscillators can help identify overbought or oversold conditions and assess the strength of price movements.

Fundamental Analysis in Volatile Markets

Fundamental analysis evaluates economic indicators, geopolitical events, and central bank decisions influencing currency pairs. Understanding the underlying factors driving market volatility can help traders make informed decisions. Stay updated with economic calendars, news releases, and geopolitical developments to anticipate potential volatility and adjust your trading strategies accordingly.


Managing volatility is a crucial aspect of online currency trading. By understanding the nature of volatility and implementing effective risk management strategies, traders can navigate market fluctuations and protect their capital. Assessing risk tolerance, setting stop loss and take profit orders, diversifying currency pairs, and utilising technical and fundamental analysis are key techniques to manage volatility successfully in online currency trading. Remember, volatility presents risks and opportunities and by adopting a disciplined approach and implementing sound risk management techniques, traders can enhance their chances of success in this dynamic market.

You can effectively manage volatility and make informed trading decisions by assessing your risk tolerance, setting appropriate stop loss and take profit orders, diversifying your currency pairs, and utilising technical and fundamental analysis. Remember to stay informed about market events, economic indicators, and geopolitical developments that may impact currency pairs.

In conclusion, managing volatility in online currency trading requires knowledge, skills, and disciplined risk management. Embrace volatility as an inherent characteristic of the forex market, and develop strategies that align with your risk tolerance and trading objectives. By implementing effective risk management techniques and staying focused on your trading plan, you can navigate the challenges and capitalise on the potential rewards offered by online currency trading.

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The Role of Trustees in SMSF: Responsibilities and Best Practices

Self-Managed Superannuation Funds (SMSFs) provide individuals with a greater degree of control over their superannuation investments. Central to the successful operation of an SMSF are the trustees who bear the responsibility of managing the fund’s assets and ensuring compliance with legal and regulatory obligations. In this article, we will explore the role of trustees in SMSFs, their key responsibilities, and best practices they should follow.

What is an SMSF?

A Self-Managed Superannuation Fund (SMSF) is a private superannuation fund that is established and managed by individuals for their retirement benefit. Unlike traditional superannuation funds, SMSFs allow members to act as trustees, giving them direct control over investment decisions and fund management.

Who are Trustees?

Trustees are individuals responsible for managing the SMSF and making decisions on behalf of the fund. They have a fiduciary duty to act in the best interests of the fund members and ensure compliance with legal and regulatory requirements.

Responsibilities of SMSF Trustees

1 Investment Decisions

One of the primary responsibilities of SMSF trustees is making investment decisions for the fund. They must develop and regularly review an investment strategy that aligns with the fund’s objectives and risk tolerance. Trustees should diversify investments, consider liquidity needs, and ensure investments are made in accordance with the law.

2 Compliance with Regulations

SMSF trustees are legally obliged to comply with various regulations and laws. This includes adhering to the Superannuation Industry (Supervision) Act, Superannuation Industry (Supervision) Regulations, and tax laws. Trustees must ensure the fund’s operations, reporting, and record-keeping are in line with these requirements.

3 Record-Keeping and Reporting

Trustees are responsible for maintaining accurate and up-to-date records for the SMSF. This includes financial statements, member contributions, investment transactions, and fund activity. Trustees must also prepare and lodge annual returns and reports to regulatory authorities such as the Australian Taxation Office (ATO).

Best Practices for SMSF Trustees

1 Regular Review of Investment Strategy

Trustees should regularly review the SMSF’s investment strategy to ensure it remains relevant and aligned with the fund’s objectives. This involves assessing the performance of investments, reviewing asset allocation, and considering any changes in members’ circumstances or market conditions.

2 Engaging Professionals

Seeking professional advice is a best practice for SMSF trustees. Financial advisors, accountants, and auditors can provide expertise in areas such as investment management, tax planning, and compliance. Engaging professionals helps trustees make informed decisions and navigate complex regulatory requirements.

3 Staying Updated on Legal and Regulatory Changes

Trustees must stay informed about changes in superannuation laws, regulations, and industry practices. This includes being aware of new legislation, ATO guidelines, and case law that may impact the operation of their SMSF. Regular education and keeping abreast of developments ensure trustees fulfill their responsibilities effectively.

The Importance of Trustee Education and Training

Given the complex nature of SMSFs and their regulatory requirements, trustee education and training are crucial. Trustees should invest in their own knowledge and skills by attending seminars, workshops, and educational programs specifically designed for SMSF trustees. This helps them stay updated, make informed decisions, and fulfill their duties more effectively.


SMSF trustees play a pivotal role in the success and compliance of self-managed superannuation funds. Their responsibilities encompass investment decisions, compliance with regulations, and record-keeping. By following best practices, such as regular review of the investment strategy, engaging professionals, and staying informed about legal changes, trustees can ensure the smooth operation and long-term growth of the SMSF.

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EXANTE founder profile – Alexey Kirienko

Alexey Kirienko is one of three co-founders of EXANTE, alongside GatisEglitis and Anatoliy Knyazev. Kirienko, whose Bloomberg profile can be found at:

Kirienko has decades of financial expertise formed during his years as a trader and now as CEO of Cyprus-listed broker EXANTE. Kirienko’s experience in the markets begins at university, where he studied various related disciplines that developed the technical skills used in trading. This was followed by a period working as a trader himself, and finally his business-focused role building out EXANTE with the other founding partners. Kirienko’s company has received various awards and operates in over twenty countries worldwide.

Kirienko’s passion for mathematics and mathematical statistics led him to pursue a Master’s degree in Economics, where he developed a keen interest in probability and game theory. However, he soon realised that theoretical knowledge of statistical arbitrage was not enough. Seeking real-world applications for his expertise, Kirienko began trading securities during his second year of college. This practical experience allowed him to put his theoretical knowledge to the test and develop sophisticated investment strategies, profiting off small price differences between derivatives contracts and their underlying securities. This form of trading relies on both advanced statistical methods and constant monitoring of financial markets for very small price discrepancies, relying on sophisticated, usually automated software to execute trades at pace.

Kirienko’s talent and insights quickly propelled him forward, and by 2003, he was promoted to work on a derivatives trading desk dealing with global markets. Most derivative products are used to manage risk exposure, either as a hedge for existing positions or business operations or as speculative investments in their own right. Trading international derivatives requires a good understanding of both the financial mathematics of the relevant contracts and the economic and financial conditions in the global markets you trade. Acquiring this experience broadened Kirienko’s understanding of global financial markets and emphasised the importance of diversifying risks across different geographies, a principle continued by EXANTE.

One of the stated aims of EXANTE is to provide a single interface where professional clients can execute trades across asset classes and across geographies. With a strong network of local offices and access to many of the world’s major financial markets, EXANTE offers clients the opportunity to trade internationally with ease.

EXANTE was founded in 2011 when Kirienko met Eglitis and Knyazev. Initially the broker operated out of Malta (regulated by the MFSA) before expanding into Cyprus (obtaining authority from the CySEC), Hong Kong (regulated by the SFC) and the United Kingdom (FCA-authorised). These multiple listings ensure the most exacting standards for client money segregation, reporting and client privacy. The company experienced rapid growth, attracting professional clients looking for access to global markets, and as of 2023 has over $2 billion under management. This expansion hasn’t come easily: Kirienko played a crucial role in developing EXANTE’s business model, envisioning the company as a broker that facilitates connections between investors, traders, and exchanges across the globe.

Today EXANTE has a footprint in over 20 markets worldwide, and specialises in allowing traders to access foreign markets simply and hassle-free, with a strong focus on privacy. Another particular focus of EXANTE under Kirienko’s management has been the development of an unparalleled customer service team, with a three-minute max wait time for clients to speak to a human agent, on a system operating 24/7.

Over the past decade, EXANTE has garnered numerous accolades and awards across various award categories, showcasing both EXANTE’s technical capabilities and commitment to innovation. These accolades include investment awards, diversity in finance awards, and the prestigious titles of ‘Best Trading Platform’ and ‘Best CEO 2020/21’ from European Business Magazine. Kirienko expressed his gratitude for these achievements, highlighting the dedication of the company’s employees and their continuous efforts to stay ahead of the curve. This recognition emphasizes EXANTE’s commitment to excellence and employee growth. Rapid expansion of the EXANTE team during Kirienko’s tenure as CEO is another demonstration of the growing reach and complexity of the organisation.

Aside from his role at EXANTE, Alexey Kirienko is widely recognized as an expert in global financial markets and derivatives trading. His expertise has led to invitations to speak at specialized conferences around the world, sharing his expertise on finance, globalisation and cryptocurrency. Additionally, Kirienko utilizes his expertise to identify promising fintech startups in their early stages, and is a renowned expert on cryptocurrency adaptation. With his profound knowledge and experience in the financial industry, Alexey Kirienko continues to shape the success and reputation of EXANTE while contributing to the general development of seamless, international financial markets.

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