Greetings All -

I'm brand new to FOREX, have read rather a lot of introductory material to help get my bearings, and also have a pretty fundamental grasp of trading nuts and bolts. What I don't know, and would like to know, is what happens behind the scenes. If you put a trade that is, what happens? (with respect to flow of funds)

Here's my perception, at a very large degree, of what goes on: A FOREX exchange (that is, a retail commerce - I'm sure that wholesale trading is a whole different animal) in fact doesn't entail the actual purchase / sale of two currencies (although this really is what the FOREX eduional stuff would have you believe). Instead, it appears that when you put a trade you are actually placing a wager on what will transpire in the'actual' FOREX market. I don't believe that the cash spent on a commerce is injected in the FOREX market all. Rather, I believe that the money sits in an account held by the broker, and also the amount rises and falls based on the position you have taken and the motion of the currencies included.

So a retail FOREX trader is purely speculating, and not buying or selling anything. In this circumstance, the FOREX broker operates as a kind of casino.

That's my understanding. I have no idea if it is correct. Any lighting from more edued folk out there will be greatly appreciated. Thank you Beforehand.