Time arbitrage refers to the arbitrage business that uses the difference between spot exchange rate and forward exchange rate of two currencies and the imbalance of interest rate difference between the two currencies to buy spot ftc foreign exchange and sell forward foreign exchange at the same time to earn interest difference and remittance difference. Time arbitrage is essentially a swap transaction, but the former focuses on trading motives and the latter focuses on trading methods. The purpose of time arbitrage is to obtain ftc foreign exchange arbitrage income, and arbitrage is only carried out when the exchange rate difference in different delivery periods is profitable. Swaps are usually used to prevent exchange rate risks, and generally do not care too much about the exchange rate differences in different delivery periods.

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