The use of forward interest rate agreement for hedging is conducive to avoiding the complexity of applying for forward foreign exchange by both borrowers and borrowers and avoiding the risk of interest rate changes. The characteristics of forward interest rate agreement transactions include: flexibility, as an over-the-counter trading tool, the contract terms of forward interest rate agreement can be formulated according to the requirements of customers to meet their individual needs; The actual loan funds are not used, but the interest difference calculated by paying the nominal principal is relatively small; There is no need to pay any fees before the settlement date, and the interest difference is paid in one lump sum on the settlement date. Forward interest rate agreement mainly avoids the risk of interest rate change by fixing the interest rate of actual delivery in the future, which has the advantages of simplicity, flexibility and no need to pay margin.