From what I have read in the literature, if I remember correctly, the idea is that the flow of water makes the difference. While low in total levels, so much water passes by the algae that it is constantly able to pick up the nitrates. If you have a closed system with, say, X amount of nitrates, then only X amount of nitrates is possible. If 1/10 of X is in water flowing past the coral 10 times per day, it grabs 1/10th X ten times and never depletes the total system.On the reef nitrate is extremely low - yet there is algae. How?
The flaw in this reasoning, if you will, is that the tank is not a closed system. Food is introduced to critters who process the food over time and release nitrates. Leftover food rots over time. Denitrifying bacteria work over time. Hence, the "closed system" also has a "flow." The flow is from nitrate producers to nitrate consumers.
In the ocean, the same thing happens, I would imagine. If water flows past a coral on a straight line from A to B ( it doesn't but bear with me), then your source of producers is everything along the line from A to B. Consumers also run from A to B, but they are spread out as well. Just the flow is greater from water movement than from slow-release producers, I would imagine.