There is no different between trading in foreign exchange market and trading in any other goods, all requires exchange process in its activities, where the owner (seller) will deliver its goods to the other party (buyer), and buyer will give sum of money to be exchanged. However, in foreign exchange market both buyer and seller same all using money as the exchange instrument, and money it self may comes from different source. For example, here in Indonesia we have rupiahs currency, and we decide to buy US Dollar. Consequently, we will make deliver our rupiahs to get US Dollar. Common said that exchange rates always follow the market price. Suppose we want to buy a cow, the price is Rp 5,000,000, then we should pay cash that cow and it all ours. This is also valid to forex market. If US Dollar price is Rp 9,000, then we should pay that sum of money to get 1 USD, or Rp. 18,000 for 2 USD.
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