Crypto markets consist of makers and takers. Market makers create buy or sell orders that are added to the order book and are not executed immediately. For instance, placing a limit order to sell 1 BTC when the price reaches $50,000. These orders provide liquidity to the market, making it easier for other traders to instantly buy or sell BTC once the conditions are met. Traders who buy or sell immediately are called takers, as they fulfill the orders created by the makers.
Exchanges usually incentivize makers to provide liquidity by offering lower fees for their orders. If you’ve checked our Trading Fee , you will see that Coinstore charges different fees for futures depending on whether you are a maker or a taker. Let's explore both roles in detail.
Taker :
You are a taker when you place an order that executes immediately without going on the order book. This applies whether you partially or fully fulfill the order.
Market orders always result in taker trades, as they never appear on the order book. These trades "take" volume off the order book, hence the term taker trades.
Maker:
You are a maker when you place an order that partially or fully goes on the order book, such as a limit order. Any subsequent trades from that order are considered maker trades.
These orders add volume to the order book and contribute to market liquidity, thus being termed makers for subsequent trades. Please note that using a limit order does not guarantee that your order will be a maker order.