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Displacement Reactions of Halogens.

I'm finding this difficult to understand.I think it's because if how it's worded in the textbook.
So far I know halogens are oxidising agents .they get reduced(gain electrons) .
In the textbook theres an example of Cl2 + 2KBr -> 2KCl + Br2
And it says "a halogen will displace a halide from solution if the halide is below it in the periodic table and there will be a colour change"
Does it mean the chlorine takes the place of iodine (displaces it) because it's a stronger oxidising agent.initially it's K+Br- but chlorine is a electron grabber than bromine so gains the electron from K+.the bromine goes from a bromide ion to bromine and chlorine goes from chlorine to a chloride ion?

I'm one of those people that has to understand 'why' something is what it is :|

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