I would like to know when I open a position in market, what happened or what the broker does with my position really. Do I buy/sell anything in market or just we trade in market virtually and nothing is going to be sold/bought in the market? Please give me some references for future study Thanks
First, define "the market", particularly as Forex is not "a market" but there are different markets. Second, it depends on the broker. SOMEONE obviously has to be able to pay you the profits if you make any, or? ;) This is a wide topic, but generally SOMEONE has the other side position - either the broker (dealing desk), another client or a liquidity provider.
There is no "market" as in exchange - different Forex brokers have different order books.