Not Understanding How to Short On Kraken

[coinheadzero]

hello all,

i am having a heck of a time trying to understand how shorting works on Kraken.

can anyone help me understand what is going on and how to actually trade a short position?

i saw their video that does more to confuse than clarify.

https://www.youtube.com/watch?v=BeKbltL3kCw

lets start with an example.

if i have in my kraken account $1,000 USD.
let's say bitcoin is at $10,000 USD.

i expect it to go to $9,000 USD.

if i understand correctly, if i want to short it, then i need to borrow the bitcoin and sell it at $10,000, and then buy it back if it hits my lower target.

but here is where i start to get very confused.

lets say i have no bitcoin and only usd in my account.
so to short, i place a sell order for .1 bitcoin ($1,000 USD) at 2x leverage

what does this actually mean?

i am borrowing the .1 bitcoin but will half the amount ($500 USD) be deducted from my account immediately?

and how do i close the position?
i would have to buy back the bitcoin, but do i have to buy back at the same 2x leverage level?
what happens and how does that affect my example if i choose a different leverage amount?

this is all so very confusing and much more so than i think it needs to be.

really hoping someone can help me clarify whats actually going on.

i appreciate it.

[Kraken-Septimus]

Hi coinheadzero. At the time of writing this, we didn't have the option to short, but it's been activated again at this point.

No funds would be debited from your Kraken account until the position is closed. You would be borrowing the BTC0.1 and selling it and your funds would be held as collateral. These would still be listed as a balance on your account. Once you close the position you would either be debited or credited the difference between what you sold at and when you bought back.

Please make sure you fully understand this before trying to short.

If you need anything else please reach out to us in a ticket or drop by our Bitcointalk thread!