Maker vs Taker

Traders submit trade orders which are filled(executed) by an Exchange.

Maker order vs Taker order

The maker and taker model is a way to differentiate fees between trade orders that provide liquidity (“maker orders”) and take away liquidity (“taker orders”).

Maker and taker trade orders are charged different fees.

When is my trade order considered as maker order?

• If the trade order is not matched immediately against an order already on the order book, it is considered as maker order as it adds liquidity​.
• Makers are Liquidity providers. Makers are the traders that create order and wait for it to be filled.
• For maker order, makerFee is charged. Maker fees start at 0.16% and can go as low as 0.00%.

When is my trade order considered as taker order?

• If the trade order is matched immediately against an order already on the order book it’s considered as taker order as it removes liquidity​.
• Takers are the one’s that fill someones order.
• For taker order, takerFee is charged. Taker fees start at 0.26% and can go as low as 0.10%.
• Example: As all market orders will execute immediately, they are considered as taker order and will be charged the taker fee. This includes conditional orders that convert to a market order, such as a stop loss order and a take profit order.

Maker vs Taker

Summing it up, makers are the traders that create orders and wait for them to be filled, while takers are the ones that fill someone else’s orders. The key takeaway here is that market makers are the liquidity providers. … In contrast, takers make use of this liquidity to easily buy or sell assets.