How does one short bitUSD?
Given the following:
Let's say BTS is trading at $10.
1BTS is then worth 10bitUSD
I am not seeing how you could even short bitUSD. I see you can short BTS.
In order to short a bitUSD $1 would have to end up being worth less than $1, which isn't possible. $1 will always be $1, just what you can buy with that is what changes.
So let's take shorting BTS:
I sell 1 BTS for $10 giving me 10 bitUSD. What collateral is used, if I had no BTS to short in the first place. Since naked shorting isn't happening, wouldn't shorting just be a closing of a BTS position?
If anyone has a full trade examples of what happens with bitUSD, that would be great!