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In the international trade settlement, the letter of credit method of settling accounts occupies the suitable proportion now. The letter of credit (Letter of Credit, L/C), is refers to the card bank should applicant's request and draws up according to its instruction to the third party carries certain amount, depending on conforms to the stipulation documentary evidence payment written promise document in certain deadline, is the bank has the condition payment to pledge, is the establishment in the bank credit foundation method of settling accounts, in the international trade settles accounts uses widely. But its own characteristic causes the letter of credit to have a series of risks in the practical application, it inherent unique nature (is specially it “strict consistent” principle,) often deceives for the illegal merchant makes the use, has the serious letter of credit fraudulent practice. In addition in the letter of credit settlement process also has the risk which Shan Zheng the symbol, solely does not vary, takes delivery of goods the guarantee risk as well as obtains signs the bill of lading but actually the risk. Because letter of credit service own complexity and the independence increased the risk guard difficulty in contract abstractness, understands and dodges the letter of credit settlement of exchange risk, to is engaged in the international trade the related personnel significance to be significant. this article through the analysis which settles exchange to the common letter of credit, proposed the letter of credit settles exchange has the potential risk similarly, and aims at these risks, as well as its hazardous nature, from the settlement of exchange documentary evidence verification, opens the card good credit to adjust aspects and so on investigation, soft provision guard, proposed the letter of credit settlement of exchange risk's guard method, how does guard against the letter of credit cheat, how to utilize the international law convention to guard against the letter of credit risk, as well as how to advance the letter which arises at the historic moment along with the time to guarantee the service the use, is the question which this article needs to solve. And aimed at our country Foreign trade enterprise the present situation which settled accounts using the letter of credit to propose the concrete measure.