The biggest difference between the comprehensive forward foreign exchange agreement and the forward interest rate agreement is that the former is aimed at the interest rate difference between two currencies and the determined forward difference, while the latter is aimed at the absolute level of a country's interest rate.

But there are many similarities between the two:

1, and the pricing method is m×n, where m represents the time from the contract signing date to the settlement date and n represents the time from the contract signing date to the expiration date.

2. Both of them have five time points, namely, contract signing date, start date, confirmation date, settlement date and expiration date, and the relevant provisions are the same.

3. Nominal principal is not convertible.

Formally, FRA and interest rate futures have similar advantages, that is, they avoid the risk of interest rate changes, but there are also differences between them, which are summarized in the following table. The trading form of FRA interest rate futures is traded in the OTC market, with unlimited trading amount and delivery date, flexibility and simplicity, and the credit risk of intra-exchange trading and standardized contract trading is minimal. Cash flow before delivery does not occur, and each margin account has a net cash flow. All currencies specified in the convertible currency exchange are applicable.