What Is a Maker?
A Maker refers to a trader who places orders in the order book and waits for other traders to complete the orders.
When you set a buy price lower than the current market price, or a sell price higher than the current market price, your order will be placed in the order book. It will not be executed immediately until another trader accepts your price.
Role of Makers
- Makers provide liquidity to the market by enhancing the depth of the order book, which is why they are also referred to as “liquidity providers”.
- To encourage this behavior, exchanges usually charge lower trading fees for makers (aka “Maker fees”).
What Is a Taker?
A Taker is a trader who accepts existing orders from the order book.
When you place a market order or a limit order that instantly matches an existing opposing order in the order book (for example, buying or selling at the market price or a better price), you “take” liquidity by completing the orders in the order book.
Role of Takers
- Takers actively consume the liquidity that already exists in the market, and therefore are also called “liquidity consumers”.
- Since takers prioritize immediate execution, exchanges usually charge higher trading fees (aka “Taker fees”).
Differences Between Makers and Takers
| Maker | Taker | |
| Execution method | Not immediately executed; remains pending in the order book | Immediately executes with an existing order in the order book |
| Order type | Usually, a limit order (sets a specific price) | Market order, or a limit order that can be executed immediately |
| Role | Liquidity provider | Liquidity consumer |
| Trading fee | Lower | Higher |
| Objective | Control costs, seek better prices at the cost of time | Prioritize efficiency and immediate execution |