Hello marc_t
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Basically most people here (on moneytec) carry out spot foreign exchange transactions
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I doubt it very much
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Am I correct to assume the broker puts up the US$ 490,000
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Broker lend/borrow money for the total open position only if you hold the position overnight.
Assuming GBP/USD price is 1.91, so you can buy approximately 260,000 GBP for 0.5M USD. You will pay/collect 2% annually on 0.5M USD = $27 per night. Spread will be $78 (min) - $130, so you need to hold open position for at least 3 nights/4 days - 1 week to break even.
If you keep open position you are subject to the currency risk. In case GBP/USD goes not in your direction you position will be closed by your broker with a loss of $5000 (depending on broker)
