Beginner’s Guide — Taker Orders and Maker Orders

In cryptocurrency trading, Maker and Taker are two commonly used order types.

 

Maker orders refer to orders that act only as Makers, while Taker orders are orders that remove liquidity from the order book when executed. Maker orders are passive orders that do not immediately execute in the market but are instead listed on the order book, providing liquidity to the market. Therefore, they are also called liquidity-adding orders. Maker-only orders are typically used to place buy or sell orders within a specified price range without requiring immediate execution, aiming to achieve better trading prices.

In trading, Maker orders usually offer better cost efficiency than Taker orders because the opening and closing fees for Makers are generally lower than those for Takers. This is why many traders prefer to place Maker-only orders.

It is important to note that if a Maker-only order is placed at the same price as an existing order, that order will be canceled because it no longer provides liquidity.

When placing an order, selecting the Maker-only option can help traders reduce transaction fees upon execution while also providing more liquidity to the market, thereby promoting trading activity. If immediate execution is needed, a Taker order can be chosen, but it involves higher fees. Traders can select the order type that best suits their needs and market conditions.