A trading day typically consists of three sessions:
• Pre-open
• Opening
• Open

In the pre-open session, a broker may enter, cancel and modify orders. Order matching takes place based on which a potential opening price is computed although no actual trades are generated. If an online brokerage is working 24/7, then during the pre-open session, a broker can match some of the requests with the shares available with him.

In the opening session, actual trades take place based on the orders present in the system at the opening price. When trading begins on a working day, since a large number of people are logging on to the system, there will be a phenomenal rush. Also buying and selling will be taking place at a faster pace. Here, a prominent broker can place orders for shares that customers from other parts of the world have requested and the same can be sold at a later time.

In the open session, orders are matched on a continuous basis. Often there will be a scarcity for the most traded stocks. With the advent of the currency trade, the same developments in the stock market are being witnessed in the forex market as well.

In fx options trading, if a broker has enough currency reserves of a particular currency, he will be able to generate significant profits when there is a scarcity for the particular currency. Consider the present appreciation of the Indian rupee. Due to the demand from the Foreign Institutional Investors (FIIs) for more currency for investments, the value of the Indian rupee has gone up. However, how long this appreciation is likely to last is anybody’s guess.