Swap trading method refers to the method by which importers and exporters sign swap contracts with foreign exchange banks to prevent foreign exchange risks. Swap transaction requires importers and exporters to conduct two foreign exchange transactions with the same amount, different delivery periods and opposite directions at the same time, which is a typical hedging means in international credit business.

The difference between swap transaction method and hedging is that hedging is a reverse transaction on the basis of existing transactions; Swap trading is two transactions in opposite directions at the same time. The currency amount of the two foreign exchange transactions is the same, the transaction direction is opposite, and the delivery date is different. Hedging, also known as hedging transaction, refers to the fact that traders sell (or buy) the same number of futures trading contracts as hedging in the futures exchange while buying (or selling) the actual goods.