I am currently studying economics in college and taking course Macroeconomics and International Finance which covers foreign exchange market topic. The class is very crowded since there are more than 500 students taking this course and I find myself as the youngest in the class so psychologically it's not easy for me to ask a question when I don't understand certain topics. Here are my complete questions regarding this topic:
How does 'taking sell position' in foreign exchange trading work? How come a trader takes sell position despite not owning currency pairs?
How come when a trader takes sell position his transaction is immediately executed without waiting? Does it mean when he takes that position there is another trader who takes buy position at the same price?
Is it possible there is imbalance transaction between buy and sell position? I mean there are more traders who taking sell position (in term of volume transaction/ lots) than those who taking buy position or vice versa?
Is one person’s profit meaning another person’s loss?
Those questions are not my homework but they arise due to lack of my understanding in this topic and my fear of asking those questions in my class. I apologize in advance for asking too many questions. Any help would be greatly appreciated. Thanks.