There's a article I read when I had the very same questions. Here is the link.
http://continuouswave.com/whaler/ref...alBattery.html
It says the following about the BOTH position; Hope it helps.
In the BOTH position, the two batteries are connected in parallel. This has a number of implications. Unless the batteries have exactly the same state of charge, the combined voltage to the two batteries in parallel will sag to a voltage somewhat lower than the highest battery's terminal voltage. Current from the higher voltage battery will flow into the lower voltage battery and begin charging it. As long as the state of charge in one battery is higher than the other, the lower battery is more of a load than a source of power. Eventually, the batteries will reach an equilibrium, and they will both have the same terminal voltage. At that point they will both tend to supply current to loads that are attached to them, and they will both receive charging current furnished by the engine.
It would seem like operating in the BOTH position would be beneficial, but that is not always the case. Even thought the batteries will eventually rise or fall to the same terminal voltage when connected together, they will not necessarily become exactly the same. A battery (or any source of electrical engery) can be though of as having an internal resistance. The lower this internal resistance the greater the current it can supply. The internal resistance will also affect how the battery absorbs charging current. Even though they are connected in parallel, it is possible that they will supply unequal currents to the loads, and it is also possible that they will accept unequal currents from an the engine charging source.
If the batteries are significantly different in their age, their type of construction, and their state of charge, this unequal distribution of current can be more significant. To describe the situation in the simplest of terms, when two batteries are connected in parallel, they will probably tend to behave more like the weakest battery of the two than the strongest.
Paralleling the batteries can come in handy in some situations. For example, both batteries may be discharged to a point where neither alone can provide enough current to crank the starter motor, but combined in parallel they can turn the engine over.
If one battery is fully charged and the other is totally discharged, connecting them in parallel (by using the BOTH position) can cause very high currents to flow between the batteries. Extreme heat can be generated by the sudden charging of the discharged battery. Use caution in this situation. It is better to recondition a discharged battery by slowly re-charging it with an AC-operated battery charger.
The arrangement of the contacts of the typical OFF-1-2-BOTH permits the operation of the switch in the range of 1-2-BOTH without ever disconnecting the batteries from the load or the outboard charging circuit. This is important, as it is possible to cause damage to the charging circuit if the battery is disconnected while the engine is running. By choosing the path of rotation of the switch, it is possible to change from 1 to 2 without moving through the OFF position.
__________________