EOS (EOSUSD)

[BestChange]

What is a floating exchange rate?

Choosing an exchanger on BestChange, you can notice that some of them have a mark “This exchanger does not fix the exchange rate in the order”. Let’s figure out what this means for a user.

This mark can be set in two cases:

- If the trading pair is very volatile. Then the exchanger sets a short lifetime of the order or the maximum permissible deviation percentage in order to insure against sharp jumps in the rate. If the order goes beyond these limits, the rate will be recalculated up or down.
- If the deal can take a long time — for instance, if the order is with cash or when the cryptocurrency’s blockchain is highly busy. Then the exchanger recalculates the amount at the rate that takes place at the time of the completion of the transaction.

Some exchangers set a particular time limit (for example, 10 minutes), during which the rate will be fixed. If the order isn’t paid during this time, then the fixing is cancelled. Also, sometimes the rate is recalculated after a considerable change of the market rate of the currency. Say, for 5%.

A bona fide exchanger must indicate the relevant information when creating an order —the conditions for changing the rate, the number of network confirmations for cryptocurrencies, the conditions for forming the rate (for example, according to the indicators of a particular exchange), the maximum amount of recalculation of the total amount, and so on.