How Taker and Maker Trading Costs Affect Fees and Profits

In the world of cryptocurrency trading, there are two types of order methods: taker and maker. Choosing between them significantly impacts trading fees and overall profits. Understanding these differences is essential for developing cost-effective trading strategies.

Taker Orders: Speed-Focused Immediate Execution

Taker orders are used when you want to execute a trade immediately at the current market price. They utilize existing orders on the order book to fulfill urgent trades. This approach is called “taking” liquidity because it consumes existing orders.

For traders prioritizing speed, taker orders offer the advantage of quick position entry and exit. However, in exchange for convenience and immediacy, taker fees tend to be higher than maker fees.

Maker Orders: Providing Liquidity for Lower Costs

Maker orders function as liquidity providers. When you place a maker order, it is added to the order book and waits to be matched with a taker order. This process helps stabilize and add liquidity to the market.

Markets reward maker orders by offering lower fees, often set at 0.02%. Since maker orders involve strategic pricing and waiting, they require patience but can significantly reduce trading costs.

Fee Structures Significantly Impact Profits

The table below summarizes the main differences between taker and maker orders:

Note: The listed fees apply to perpetual and futures trading. For details on all trading products, please refer to the official help center.

Real-World Example: How Fees Affect Profitability

Let’s compare the final profits of two orders using a BTCUSDT perpetual contract.

Common Trading Conditions

• Currency Pair: BTCUSDT
• Contract Size: 2 BTC
• Trade Direction: Long
• Entry Price: 60,000 USDT
• Exit Price: 61,000 USDT

Trader A: Using a Maker Order for Entry and Exit

Entry Fee: 2 × 60,000 × 0.02% = 24 USDT
Exit Fee: 2 × 61,000 × 0.02% = 24.4 USDT
Position Profit (excluding fees): 2 × (61,000 - 60,000) = 2,000 USDT
Final Profit: 2,000 - 24 - 24.4 = 1,951.6 USDT

Trader B: Using a Taker Order for Entry and Exit

Entry Fee: 2 × 60,000 × 0.055% = 66 USDT
Exit Fee: 2 × 61,000 × 0.055% = 67.1 USDT
Position Profit (excluding fees): 2 × (61,000 - 60,000) = 2,000 USDT
Final Profit: 2,000 - 66 - 67.1 = 1,866.9 USDT

Comparison Result

Despite both traders earning a profit of 2,000 USDT, Trader A ends up with approximately 84.7 USDT more than Trader B. Simply choosing a maker or taker order can lead to significant differences in final profitability.

This example highlights how crucial it is to understand fee structures before starting trading. By considering costs carefully and selecting the method best suited to your trading style, you can maximize your profits.

Tips to Ensure Maker Orders Are Filled

To reliably execute maker orders and enjoy lower fees, consider the following strategies:

1. Use Limit Orders – Maker orders are limited to limit orders. Strategically set your prices within the order placement zone.

2. Choose Post-Only Options – This option prevents your limit order from being immediately matched, ensuring it remains a maker order.

3. Set Prices More Favorable Than the Market – Place your limit orders at prices better than the current best bid or ask to increase the likelihood of being recognized as a maker.

4. For Buy Orders – Set your buy limit price below the current best bid.

5. For Sell Orders – Set your sell limit price above the current best ask.

Be aware that if your limit order is unexpectedly filled immediately, it will be treated as a taker order, incurring higher fees. Using post-only options helps prevent this and avoids unintended high fees.

Understanding the differences between taker and maker orders and choosing the appropriate method for your trading strategy is a vital step toward maximizing long-term profits.