Academy › Swap basics › Lesson 2
Fixed or floating rate: which one to pick for a swap
The rate type decides who carries the risk while your deposit confirms.
01Floating rate
The final amount is calculated when your deposit is confirmed. If the market moves, the amount moves with it.
02Fixed rate
The amount is locked when you create the order, usually for a short window. The price for this certainty is often a slightly worse rate.
03The time window
A fixed rate is only valid if the deposit arrives in time. Late deposits are usually re-quoted or refunded.
04Choosing
Small, quick swaps often work fine with a floating rate. When the exact amount matters, a fixed rate removes surprises.
Key pointFloating rates follow the market until your deposit confirms; fixed rates lock the amount for a short window.