Suppose I have US Dollars on Kraken and no BTC. And suppose I expect the Bitcoin price to drop a bit (which I don't, but suppose) so I would want to speculate and take a short position.
Is this possible at all, or do I first need to have BTC in my account, in order to 'short sell' them?
It feels kind of counter-intuitive to first buy BTC to then immediately sell (short) them.
Suppose I don't want a higher leverage, i.e. I just want to short "1x" so to speak. So the price going down by 7% would mean 7% profit (minus trading fees). Am I right in thinking I should then first buy BTC, and then sell that with 2x leverage?
And similarly if I'd want to short with 3x leverage. But have no BTC yet. Should I then first buy BTC (through a normal order, not margin) and then margin sell it with 4x leverage?