A vanilla contract is also called USDT contract, the asset used in pricing and settlement are calculated in USDT.
For example, BTC/USDT vanilla contract, BTC is the underlying asset, USDT is the pricing and settlement asset.
For vanilla contracts, as long as you hold USDT, you can directly trade perpetual contract in multiple mainstream assets, instead of holding multiple currencies and do one-to-one correspondence trades, which is very convenient.
Vanilla contract is the simplest type of contract, it has the same concept of spot trading.
Realized profit and loss calculation for vanilla contract:
Long:
realized profit and loss = (contract multiplier * average closing price - contract multiplier * average opening price) * number of closed positions
For example, a user opens long 1,000 BTC/USDT vanilla contracts at an average opening price of 8,000 USDT, and then closes 1,000 contracts at an average closing price of 10,000 USDT.
The realized profit and loss of the contract = (10000 * 0.0001 - 8000 * 0.0001) * 1000 = 200 USDT
Short:
realized profit and loss = (contract multiplier * average opening price - contract multiplier * average closing price) * number of closed positions
For example, a user opens short 1,000 BTC/USDT forward contracts at an average opening price of 8,000 USDT, and then closes 1,000 contracts at an average closing price of 10,000 USDT.
The realized profit and loss of the contract = (8000 * 0.0001 - 10000 * 0.0001) * 1000 =-200 USDT