Not necessarily correct. If you close a trade that you lost, that doesn't mean there's a person/broker that took the opposite trade and won. Example: You bought at 100 and sold at 95 so lost 5. When you bought at 100 the person that sold you the position at 100 might have closed a winning position or losing position. When you sold at 95 the person that bought might have just opened a long position or closed a short position at a loss or profit. The only time YOUR trade had the opposite person/broker with the opposite win/loss as you is if the broker took your trade and didn't offset/hedge your trade. In the forex world, brokers can offset/hedge your trade or just trade opposite you. They will have an *A* book and *B* book for the trades/traders. Profitable traders go in the *A* book. Losing traders in the *B* book. Brokers will hedge the *A* book so they don't lose $$ but will trade opposite the *B* book as those traders are *losers* so better to trade opposite to make money. ***This is just my understanding of how forex works. Not all forex brokers do this & this is NOT how it works in futures/equities but the first part is true for futures/equities.
Umm, in Forex trading, it's not a direct win-lose situation between traders. The market's about supply, demand, and various factors influencing currency values. If you experience a loss, it doesn't mean someone else gains directly from it. Profits come from understanding market dynamics, and it's a collective interplay of factors shaping currency movements. You can check this video to learn deeper about how supply and demand work in forex trading:https://insights.primecodex.com/factors-that-influence-supply-and-demand/