Question about shorting BitAssets

[tbone]

Both the long and the short answers are very helpful.  Thank you both for taking the time!

[tonyk]

@Xeldal  at least I answered all the questions asked... which is something.

Some great contributors [in their own eyes] have never bother to answer any question be it a stupid one or not. Their time is obviously better spent accusing others in not doing enough praising of their 'great value' , and calling them names for that.

[Xeldal]

Once you have borrowed bitassets, you position has not changed at all .. (unless you get margin called in the meantime) you still have all you need to access all your BTS again (minus the fees).
Essentially you are relabeling your BTS in the collateral as bitUSD (or whatever MPA) .. your position only changes when you sell them "short" ..

does this make sense to you?

Thanks for your answer.  It makes sense so far.  But please allow me to probe a little further.  So what happens to my position once I've shorted BitUSD?  Am I now more long BTS than I was before?  Also, what if I decided not to short the BitUSD, but instead I used the borrowed BitUSD to purchase some other asset. Is that even possible?  Let's say I use it to purchase BitBTC.  So now I'm long BitBTC (or more long than before).  What about my BTS position, does that change?  Thanks in advance for helping me understand this.

heres my long winded answer.  I think Tonyk summed it up better in 1 sentence. : )

by borrowing say 100 USD you are neutral and simply owe the network 100 USD, which you now have and can return at anytime.
You have 100 USD
You owe 100 USD
you are net neutral.  long USD short USD

if you then sell the 100 USD in exchange for BTS :
you have BTS  (100 USD worth)
you owe 100 USD
So you are long BTS short USD

if instead you sell the 100 USD in exchange for BTC:
you have BTC (100 USD worth)
you owe 100 USD
so you are long BTC short USD

in any case you can be margin called if the value of the BTS backing the 100 USD borrowed falls below the margin requirements.  So you will be looking to ensure that whatever you are long maintains a USD value to either pay off what you borrowed or purchase enough BTS to further secure the borrowed USD.

For example if you used the 100 USD to buy BTC at $300 and BTC then went to $1000 while at the same time BTS went from $.004 to .0015 .  Depending on your collateralization you may be at risk of being margin called on the USD you borrowed.   So you could either sell $100 worth of BTC to pay off the borrow or sell some BTC for BTS to top up your collateral.

[tonyk]

Once you have borrowed bitassets, you position has not changed at all .. (unless you get margin called in the meantime) you still have all you need to access all your BTS again (minus the fees).
Essentially you are relabeling your BTS in the collateral as bitUSD (or whatever MPA) .. your position only changes when you sell them "short" ..

does this make sense to you?

Thanks for your answer.  It makes sense so far.  But please allow me to probe a little further.  So what happens to my position once I've shorted BitUSD?  Am I now more long BTS than I was before?  Also, what if I decided not to short the BitUSD, but instead I used the borrowed BitUSD to purchase some other asset. Is that even possible?  Let's say I use it to purchase BitBTC.  So now I'm long BitBTC (or more long than before).  What about my BTS position, does that change?  Thanks in advance for helping me understand this.

You are not more long BTS until you actually sell the bitUSD. In that regard if you sell it for BTS you will be long-er BTS if you sell  it for bitBTC you will be long(er)  bitBTC.

[tbone]

Once you have borrowed bitassets, you position has not changed at all .. (unless you get margin called in the meantime) you still have all you need to access all your BTS again (minus the fees).
Essentially you are relabeling your BTS in the collateral as bitUSD (or whatever MPA) .. your position only changes when you sell them "short" ..

does this make sense to you?

Thanks for your answer.  It makes sense so far.  But please allow me to probe a little further.  So what happens to my position once I've shorted BitUSD?  Am I now more long BTS than I was before?  Also, what if I decided not to short the BitUSD, but instead I used the borrowed BitUSD to purchase some other asset. Is that even possible?  Let's say I use it to purchase BitBTC.  So now I'm long BitBTC (or more long than before).  What about my BTS position, does that change?  Thanks in advance for helping me understand this.

[xeroc]

Once you have borrowed bitassets, you position has not changed at all .. (unless you get margin called in the meantime) you still have all you need to access all your BTS again (minus the fees).
Essentially you are relabeling your BTS in the collateral as bitUSD (or whatever MPA) .. your position only changes when you sell them "short" ..

does this make sense to you?

[tbone]

The help section on shorting BitAssets says you can short a BitAsset by first borrowing it from the network, then selling it short.  So the question I have is, AFTER you borrow the asset, but BEFORE you short it, what is the net effect on your positions?  Are you now long that BitAsset?  What about your BTS position?  Does that remain the same or is your long position reduced?  Thanks in advance.