Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Is real (physical) money traded during online trading?
I think you need to define what you mean by "buy currency online using some online forex trading platform" ... In large Fx trades, real money [you mean actual electronic money, as there is not paper that travels these days]...   The Fx market is quite wide with all kinds of trades. There are quite a few Fx transactions that are meant for delivery. You have to pay in the currency for full amount and you get the funds electronicall credited to you in other currency [ofcouse you have an account in the other currency or you have an obligation to pay]. This type of transaction is valid in Ismalic Banking. The practise of derivaties based on this or forward contracts on this is not allowed.