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.
Sidepit L2 is for trading the forward bitcoin price of dollars
USDBTC
USDBTCH25 is the price of USD in Bitcoin on March 28th, 2025, 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:
Buy 1 ($500 contract) at 1000 (SATs per dollar)
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 March 28th 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 March 28th, 2025, 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 Mar 28th your .00625 bitcoin account balance, will be unlocked back to your Sidepit-id wallet!
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