1. It is relative to the end point of the preceding sibling when sibling is part of the normal document flow, i.e. not floated or absolutely positioned. Meaning your element will begin where your last one stopped, providing that one was also a regular document.
2. Not really. You can absolutely position an object within another positioned (absolutely or relatively) object, where parent will always serve as a referrence point (i.e. inner object will maintain its fixed position within the parent element.
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