Maker vs Taker
Maker adds liquidity by placing limit orders that rest in the order book (not immediately filled). Taker removes liquidity by filling existing orders (often market orders).
✦ Key Insight
Why It Matters: Exchanges offer lower (or even negative) fees for makers to encourage liquidity. Understanding this optimizes costs and strategy. How It Works: Post-only limit orders = maker. Aggressive market or limit orders that cross the spread = taker. Fees are tiered by 30-day volume. Commo
✕ Common Misconceptions
It is often mistaken for similar sounding terms, but the technical implementation is distinct.
Detailed Explanation
In Practice
Dig Deeper
Order Book
A real-time list of all buy (bids) and sell (asks) orders for a trading pair, showing market depth at different price levels.
Slippage
The difference between the expected price of a trade and the actual executed price, usually due to volatility or low liquidity.
Post-Only Order
A limit order flag that ensures the order only adds liquidity to the order book (acts as maker) and is canceled/rejected if it would immediately match/take existing orders.
Ad
Get a $100K funded account
See current qualification terms and payout conditions.
Sponsored