Foreign exchange spread refers to the interest rate difference between currencies of different countries. In the foreign exchange market, due to the different development levels and economic conditions of different countries, the interest rates of different currencies are also different. When the interest rate of a country's currency is higher than that of other countries, its currency will be considered as a high-yield currency. At this time, investors tend to hold the country's currency, which leads to the appreciation of the country's currency and generates foreign exchange spread income.

The size of foreign exchange spread depends on the size of the spread. If the interest rate difference between the two countries is large, then the foreign exchange spread is likely to be high. Foreign exchange spread can be used as a trading strategy, mainly for investors who pursue high returns. This strategy needs to choose countries with good economic conditions and strict monetary policies to invest in order to obtain a high level of foreign exchange spread income.

It should be noted that foreign exchange spreads also have certain risks. Due to the uncertainty of currency interest rates in various countries and the uncertainty of foreign exchange market fluctuations, foreign exchange spread income is unreliable. In addition, when carrying out foreign exchange carry trade, we should also consider transaction costs, liquidity and other issues. Therefore, when investors participate in foreign exchange carry trade, they need to carry out sufficient research and risk management measures to keep their assets safe when the market fluctuates.