# USDBTC

## Forward Price

The forward price of Bitcoin is the price of Bitcoin at a date and time in the future. The difference between the spot price and forward price, the basis, covered in the [**traders education**](#forward-price).

Sidepit L2 is for trading the forward bitcoin price of dollars

## USDBTC

**USDBTCZ24** is the price of USD in Bitcoin on **December 27th, 2024, at 6 PM PT**.

### How Does It Work?

Imagine you believe Bitcoin will drop from $100k to $80k by Christmas, you have .005 bitcoin, and wish to give a gift of $500 worth of bitcoin:

You hedge at Sidepit:

1. **Buy 1 ($500 contract)** at 1000 (SATs per dollar)
2. **Sell 1 ($500 contract)** at 1250 (SATs per dollar)

#### Profit Calculation:

* 250 tics profit × 500 = 125,000 sats
* 125,000 sats = 0.00125 Bitcoin
* 0.00125 × $80,000 = $100 profit

#### Results:

* Starting BTC Balance: 0.005 BTC ($500 at $100,000)
* Ending BTC Balance: 0.00625 BTC ($500 at $80,000)

Success! You still have your $500 worth of bitcoin to give as a gift!

### What happens?

**Buy 1 at 1000 Limit** This means that On December 27th at 6 PM PT:

* You agree to **buy 500 USD** for 500,000 SATs.
* You agree to **sell 0.005 BTC** for $500.

Now you have an **open Long position** on USD.

**Sell 1 at 1250 Limit** This means that On December 27th at 6 PM PT:

* You agree to **sell $500 for 625,000 SATs** (1250 SATs per dollar \* 500 dollars)
* You agree to **buy 0.00625 BTC** for $500.

This closes your Long position and leaves you flat.

### Auto UnLock

After Dec 27th your .00625 bitcoin account balance, will be unlocked back to your Sidepit-id wallet!

**Visual:** Annotate an example trade on the trading interface at [Sidepit Trading View](https://app.sidepit.com/trading-view) to illustrate the process.


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