Fixed Rate vs Market Rate: Which Should You Choose?
Every swap quote is either fixed or floating, and the choice changes what you receive. A fixed rate locks your amount when you create the order. A market rate follows the live price until your deposit confirms. Neither is always better, and picking the wrong one can cost you money. This guide explains how each rate works and how to choose between them.
What a fixed rate is
A fixed rate guarantees the amount you will receive. When you create the order, the exchange locks the rate for a set window, usually around 20 minutes. If you send your deposit inside that window, you get exactly the amount quoted, no matter what the market does in between.
The trade-off is that a fixed rate is usually slightly worse than the live market rate. The exchange takes on the risk of the price moving, so it builds a small margin into the quote. You pay for certainty with a slightly lower rate.
What a market rate is
A market rate, also called a floating rate, follows the live market. The amount you receive is calculated at the moment your deposit is confirmed, using the market price at that time. If the price moves in your favor while your deposit confirms, you get more. If it moves against you, you get less.
Market rates usually quote closer to the live market price, because the exchange is not taking on price risk. The cost is uncertainty. You do not know the exact amount until the swap completes.
Fixed vs market rate side by side
Fixed rate: the amount is locked at order creation, no surprises, slightly worse rate, best for large swaps and volatile markets. Market rate: the amount follows the live market, can be better or worse, closer to market price, best for small swaps and calm markets.
The difference between the two quotes is usually small. Check both on the swap page before you decide, and pick the one that matches how much certainty you need for that specific swap.
When to pick a fixed rate
Choose a fixed rate when certainty matters more than squeezing out the best price. That includes large swaps, where even a small price move costs real money, and volatile markets, where prices can swing several percent in minutes.
A fixed rate is also the safer choice when the network you are sending from is slow. If your deposit takes a while to confirm, a market rate has more time to move against you. A fixed rate removes that risk entirely.
When to pick a market rate
Choose a market rate when the market is calm and you want the closest possible price to the live market. For small swaps, the difference between the two rates is tiny, and the market rate often comes out slightly ahead.
A market rate also makes sense when you are swapping between two stablecoins, or between coins that usually move together. The price is unlikely to move much during the confirmation window, so the risk is low and the better rate is worth it.
A market rate also works well when you swap regularly and each swap is small. Over many small swaps, the times the market moves in your favor and the times it moves against you tend to balance out, while the slightly better market rate adds up. The key is keeping each individual swap small enough that one bad move does not hurt.
Common mistakes with rate choice
The most common mistake is picking a market rate for a large swap in a volatile market, then watching the amount shrink while the deposit confirms. If the amount matters, lock it.
Another mistake is letting a fixed rate expire. The lock lasts around 20 minutes, so send the deposit promptly after creating the order. If the window passes, the order expires and you need to create a new one with a fresh quote.
How to pick your rate on FixedSwaps
- Enter your swap — Pick the coins and the amount you want to exchange.
- Compare both rates — Look at the fixed rate quote and the market rate quote side by side.
- Pick the one that fits — Choose fixed for certainty, market for the closest live price.
- Send inside the window — With a fixed rate, send your deposit inside the lock window to keep the quoted amount.
Frequently asked questions
- What is the difference between a fixed rate and a market rate?
- A fixed rate locks the exact amount you will receive when you create the order. A market rate, also called a floating rate, follows the live market price until your deposit confirms, so the final amount can be higher or lower.
- Is a fixed rate always worse than the market rate?
- Not always. A fixed rate is usually slightly worse than the live market rate, because the exchange takes on the price risk. But if the market moves against you during a floating swap, the fixed rate can end up better.
- How long is a fixed rate locked for?
- On FixedSwaps a fixed rate is locked for around 20 minutes from order creation. Send your deposit inside that window to keep the locked rate.
- Which rate should I choose for a large swap?
- A fixed rate is usually better for large swaps, because even a small price move costs a lot on a big amount. Certainty is worth more than the small rate difference.
More guides
Fixed Rate vs Floating Rate: Which Is Better? | How to Avoid Slippage When Swapping Crypto | What Is Slippage in Crypto?
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