4 ms·
Yes, it is an overcollateralized loan. And yes, borrowing an asset and selling it means you are short regarding that asset.
by JonathanBeuys 4y ago
Yes, it is an overcollateralized loan.
And yes, borrowing an asset and selling it means you are short regarding that asset.
- mudrockbestgirl 4y agoI assume you mean borrowing an asset. You cannot short most assets because for most of them only spot markets exist, no derivatives. So the ability to have a short position on these assets is a big use case.
- JonathanBeuys 4y agoYes, "borrowing". Fixed!