Taker and Maker: Key Differences in Trading

When you open a position on a cryptocurrency exchange, you face a choice: use a taker order for immediate execution or place a maker order and wait for it to match with another market participant. This choice affects not only the speed of your trade but also the amount of commission you pay. Understanding the differences between these two approaches is critical for optimizing your trading results.

Taker Orders: When Speed Matters More Than Price

A taker is a market participant who executes their order immediately at the current market price. When you place a taker order, you are using liquidity that is already present in the order book. This mechanism allows you to quickly open or close a position, which is especially important in a moving market.

However, the convenience of speed comes at a cost. Taker orders are subject to higher trading fees compared to the alternative approach. The standard rate for a taker is approximately 0.055% of the trade amount. This fee is paid to makers for providing the liquidity that you are now consuming.

Thus, taker orders are suitable for traders who prioritize guaranteed execution over saving on commissions.

Maker Orders: Liquidity Provision Strategy

A maker is the opposite approach. When you place a maker order, you are not removing existing liquidity but adding your order to the order book and waiting for someone else to fill it. This process requires patience but is rewarded with significantly lower fees—around 0.02%.

Maker orders are only used as limit orders (you specify the price). In exchange for providing liquidity to the market, you pay a reduced fee. Additionally, makers influence the bid-ask spread, narrowing the difference between buy and sell prices, making the market more attractive to other participants.

Practical Example: Impact on Profit Calculation

Let’s consider a specific scenario with a BTCUSDT contract on a hypothetical platform:

Trade Conditions:

• Trading pair: BTCUSDT
• Volume: 2 BTC
• Entry price: $60,000 USDT
• Exit price: $61,000 USDT

Scenario 1: Trader uses maker orders for entry and exit

Opening fee: 2 × 60,000 × 0.01% = $12 USDT
Closing fee: 2 × 61,000 × 0.01% = $12.20 USDT
Theoretical profit: 2 × (61,000 – 60,000) = $2,000 USDT
Actual profit after fees: 2000 – 12 – 12.20 = $1,975.80 USDT

Scenario 2: Trader uses taker orders for entry and exit

Opening fee: 2 × 60,000 × 0.06% = $72 USDT
Closing fee: 2 × 61,000 × 0.06% = $73.20 USDT
Theoretical profit: 2 × (61,000 – 60,000) = $2,000 USDT
Actual profit after fees: 2000 – 72 – 73.20 = $1,854.80 USDT

The difference in actual profit amounts to $121 USDT in favor of the maker strategy. This clearly demonstrates how choosing a taker over a maker can significantly reduce your net gains—even on a successful trade.

How to Choose Between Taker and Maker

The decision depends on your priorities:

Choose taker orders if:

• You need to open or close a position urgently
• You are trading in high volatility and want to avoid the risk of your order not being filled

Choose maker orders if:

• You have time to wait for execution
• You want to minimize trading fees
• You are comfortable using limit orders with carefully selected price levels

To place a maker order, use a limit order, set the price strategically (below the best bid for buy orders, above the best ask for sell orders), and consider the “Post-Only” option, which cancels the order if it attempts to execute as a taker.

Before engaging in active trading, ensure you fully understand your platform’s fee mechanics. Properly understanding when to use taker or maker approaches will enable you to make informed decisions and optimize your trading results over the long term.