Fixed vs floating rate swaps: which should you choose?

Crypto prices move constantly, and a swap takes time to complete. How a swap deals with that movement is what separates a fixed rate from a floating rate.

Whichever you see, a quote is an estimate. Understanding the difference helps you read it sensibly.

What fixed and floating mean

• Floating rate: the final amount is worked out when the swap is executed, so it follows the market between the quote and the execution. The amount you receive can end up higher or lower than the estimate.
• Fixed rate: the rate is set for a defined window, and the partner takes on movement within it. The terms, such as the window and any limits, are set by the partner.

The trade-offs

A floating rate follows the market, so the outcome can be better or worse than the estimate. A fixed rate gives more certainty about the amount, but the terms depend on the partner and the quoted figure may reflect the cost of that certainty.

On HorseRouter, quotes from partners are estimates and the amount can move within your slippage setting. Slippage is the tolerance you set for how far the final result may differ from the estimate.

When to pick which

• If you need to know roughly what you will receive, for example to cover a payment, a fixed-rate quote where available may suit you better.
• If you are comfortable with some variation and the swap is small relative to price movement, a floating rate may be fine.
• For larger amounts or volatile assets, consider a tighter slippage setting and check the estimate carefully before sending.
• Whatever you choose, remember that transfers are irreversible and network fees are separate.