> For the complete documentation index, see [llms.txt](https://docs.sidepit.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sidepit.com/trader-education/future-price.md).

# Forward Price

A forward price is the price agreed today for an exposure dated in the future. Sidepit's USDBTC forward expresses the value of U.S. dollars in Bitcoin at the product's expiry.

## Spot and forward

The spot price describes immediate exchange. A dated forward price also reflects the time remaining to expiry and the market's relative cost or preference for holding Bitcoin and dollars over that interval.

The difference between spot and forward is called the **basis**. As expiry approaches, arbitrage and settlement expectations tend to pull the forward toward the relevant spot reference, though real markets can diverge because of liquidity, financing, risk, and positioning.

## Sidepit's quote

Sidepit quotes the unit the contract actually settles in: integer satoshis per USD. Each contract represents a fixed USD amount, while margin and P\&L remain in Bitcoin.

`Sidepit price = 100,000,000 ÷ familiar USD/BTC`

Examples:

| Familiar USD/BTC | Sidepit sats per USD |
| ---------------: | -------------------: |
|          $50,000 |                2,000 |
|          $80,000 |                1,250 |
|         $100,000 |                1,000 |

A higher Sidepit price means Bitcoin is worth fewer dollars. A lower Sidepit price means Bitcoin is worth more dollars.

P\&L is linear in this native quote: the same one-sat-per-USD move has the same satoshi value for the same contract quantity at every price level. The familiar USD/BTC view is reciprocal, so equal moves in that displayed number do not carry constant Bitcoin value.

## One price, several views

Sidepit publishes the market in its native unit: satoshis per future U.S. dollar. The same price can be shown in whichever frame makes the exposure easiest to read.

* **Forward USD/BTC:** `100,000,000 ÷ Sidepit price`
* **Today's dollars:** multiply the forward USD/BTC value by the U.S. dollar discount factor from now to expiry. With a continuously compounded annual zero rate `r` and year fraction `T`, that is `forward USD/BTC × e^(-rT)`.
* **Another currency:** multiply the chosen dollar view by its current FX rate. A JPY view, for example, uses JPY per USD.

The present-value view is not the spot price. It is the same dated forward expressed in today's dollars. The rate source, observation time, maturity, day-count convention, and any interpolation should travel with the number.

A trader can ask an agent for the view directly: “Show this market as Sidepit price, forward USD/BTC, today's USD/BTC, and JPY/BTC.” The market does not change. Only the lens does.

## Hedging intuition

A Bitcoin holder who wants to preserve a target amount of dollar purchasing power can BUY USDBTC. If Bitcoin falls in USD terms, sats per USD rise and the forward position can gain sats. If Bitcoin rises, that hedge can lose sats while the holder's Bitcoin gains purchasing power.

SELL USDBTC takes the opposite exposure and increases sensitivity to a rise in Bitcoin's USD price.

## Expiry and roll

The ticker identifies the contract and its expiry. A roll is a change from one dated exposure to another, so the old and new tickers, prices, expiries, basis, quantities, and execution fees should remain visible as separate legs. The active product and published schedule determine which contract can trade; they should be read again before every roll.

## P\&L

For a BUY position:

`gross P&L sats = (exit price − entry price) × contract USD unit × contracts`

For a SELL position, reverse the price difference. Then subtract execution fees: 125 sats per contract for each filled side of each execution.

The active contract publishes its USD unit, tick size, tick value, margins, and expiry. Query those values rather than carrying an example into a live decision.


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