Counter Attacking

Is there a definitive explanation as to what setting you team to counter attack does? Does it effect the way your team defends as well as attacks?

I assume it primarily effects how quickly your players look to attack when they win the ball back, but do they always look to attack quickly even if the opposition has 10 men behind the ball or do they apply some decision making and attack slower on occasions like this?

Also does it effect the way your team defends? Do your players look to sit deep and draw the opposition onto them so you can counter-attack? If so I presume it's a bad option to select if your chasing a game late on and want to throw players forward