1. In this sense, carry arbitrage refers to selling forward currencies with high interest rates in the foreign exchange market and transferring funds to countries or regions with high interest rates, that is, doing swaps while arbitrage to avoid exchange rate risks. Swap transaction refers to a transaction form in which both parties agree to exchange certain assets with each other in a certain period in the future. Swap transaction refers to a transaction in which both parties agree to exchange cash flows that they think have the same economic value in a certain period in the future.

2. In fact, secured interest arbitrage has played a role in spontaneously regulating capital flows. The capital flow of swap transactions is mainly determined by the swap price difference.