Trading Terminology : Maker and Taker

In spot and futures trading of digital assets, "Maker" and "Taker" are two core concepts. They not only determine how your orders are executed but also directly affect the transaction fees you pay.

To help you better understand how the market works, we have provided the following explanation.

I. What is a Maker?

A Maker order is an order placed at a specific price that is not immediately matched with existing orders in the order book. Instead, it is added to the exchange's order book and waits to be matched with another user's order.

Common characteristics of Maker orders:

- Buying: Your buy order price is lower than the current market price.

- Selling: Your sell order price is higher than the current market price.

- Market Role: These orders provide liquidity to the entire market, hence the name "Maker."

II. What is a Taker?

A taker order occurs when your order price overlaps with an existing order in the order book, resulting in an immediate match and execution.

Common characteristics of taker orders:

- Market Execution: You choose to execute your order immediately at the current market price (e.g., using a "market order").

- Limit Order Coincidence: Your set price overlaps with an existing market price, resulting in an immediate execution (e.g., the current best ask price is 50,000, and you place a limit buy order at 50,000 or higher).

- Market Impact: These orders consume market liquidity, hence the term "taker."

Risk Warning: Digital asset prices are highly volatile, and investments may result in the loss of your principal.Past performance is not indicative of future results. This article does not constitute investment advice. Please exercise caution and consider your own risk tolerance. Bitbase assumes no legal responsibility for any potential trading losses.

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