But I see a coupler exactly like the one pictured in a brand new Micro Trains coupler package (1049). Is it part of a complete coupler and if so, how does it function as it is a closed loop?
There are two pieces on an MT coupler. The upper one with the knuckle and pin. The pin passed down through the loop shown in the photo above. You can see in this photo taken looking from the underside of the coupler on the far right where the pin is sticking up through the loop.