Guide · 2 min read
Fixed or floating: which rate should you pick?
What a fixed rate and a floating rate each promise, and how to choose between them for your swap.
Every route on Swapabit is one of two kinds: a floating rate or a fixed rate. They differ in one thing, who carries the price risk while your swap is in progress.
Floating: the market rate at the moment of the swap
With a floating rate, the exchange estimates what you will receive. The final amount is worked out when your deposit arrives and the exchange actually trades it, so it can end up a little higher or a little lower than the estimate, depending on how the market moved in the meantime.
Floating rates are often the best number on the screen, because the exchange is not taking on any risk for you.
Fixed: the amount you see is the amount you get
With a fixed rate, the exchange locks the rate for your order. Whatever the market does after that, you receive exactly the amount you were quoted.
That promise comes with a clock. A fixed quote is only valid for a short time, shown as a countdown on your order, and your deposit has to arrive before it runs out. Exchanges also build a small cushion into fixed quotes to cover the risk, so they are often slightly below the best floating offer.
Which one should you choose?
Pick fixed when you need a precise amount on the other side, for example to pay someone or to top up an account to an exact balance, or when the market is moving fast.
Pick floating when you want the best expected rate and a small difference either way is fine, for example when you are simply moving funds between your own wallets.
How to pick one on Swapabit
The route list has a Fixed and a Floating filter at the top. Every route also says which kind it is. A fixed route says the exchange locks its rate for your order. A floating route says the exchange estimates the final amount.
Your choice stays in the link, so a link with the fixed filter opens straight to fixed quotes.
