Choosing between Maker and Taker: Key Differences and Impact on Profit

In modern cryptocurrency trading, success depends on understanding how different order types work. Maker and taker are two primary approaches to interacting with the market, each with its own features and financial implications. The choice between these strategies affects not only the speed of order execution but also the amount of fees you pay.

Taker: Priority on Speed and Immediate Execution

When a trader chooses a taker strategy, they prioritize the urgency of executing the trade. A taker order is placed to be filled immediately at the current market price, matching existing orders in the order book.

This approach means the taker consumes liquidity provided by other market participants (makers). The order is executed instantly—when the taker’s order matches with an opposite order, it is filled without delay. Therefore, if you need to quickly open or close a position, the taker ensures the necessary speed.

However, convenience comes at a cost. Immediate execution and liquidity consumption result in a higher taker fee, which is more expensive than the maker fee.

Maker: Providing Market Liquidity and Reducing Costs

A maker order operates differently. Instead of immediate execution, the maker places an order in the order book, where it remains until matched with a taker order. This order becomes part of the market structure, providing liquidity for other participants.

Because makers add liquidity to the market, they receive a reward in the form of reduced trading fees. Makers pay less for each completed trade, which is especially important when trading frequently with large volumes.

However, the maker strategy requires patience. Traders must be prepared for their order to remain unfilled for some time, waiting for a match with a taker order. Additionally, makers influence the bid-ask spread, narrowing the difference and improving conditions for all market participants.

Comparison of Characteristics: Maker vs. Taker

Note: The listed fees apply to trading perpetual contracts and futures on platforms offering these services.

Practical Calculation of Impact on Final Profit

Let’s consider a specific example trading the BTCUSDT pair:

Initial parameters:

• Trading pair: BTCUSDT
• Position size: 2 BTC
• Direction: Long (buy)
• Entry price: 60,000 USDT
• Exit price: 61,000 USDT

Scenario 1: Trader uses a maker strategy for opening and closing

Fee calculations:

• Opening fee: 2 × 60,000 × 0.02% = 24 USDT
• Closing fee: 2 × 61,000 × 0.02% = 24.4 USDT
• Gross profit (excluding fees): 2 × (61,000 – 60,000) = 2,000 USDT
• Final profit: 2,000 – 24 – 24.4 = 1,951.6 USDT

Scenario 2: Trader uses a taker strategy for opening and closing

Fee calculations:

• Opening fee: 2 × 60,000 × 0.055% = 66 USDT
• Closing fee: 2 × 61,000 × 0.055% = 67.1 USDT
• Gross profit (excluding fees): 2,000 USDT
• Final profit: 2,000 – 66 – 67.1 = 1,866.9 USDT

Conclusion: The different approaches resulted in a profit difference of over 80 USDT. When scaling up volumes or increasing trading frequency, savings on fees become more significant. This demonstrates that understanding the differences between maker and taker directly impacts your final results.

How to Effectively Place Maker Orders

If you decide to use a maker strategy to optimize costs, follow these recommendations:

1. Use limit orders — the primary tool for makers. Place them in the appropriate interface area of your trading platform.

2. Enable Post-Only mode — this feature prevents your order from being filled immediately as a taker, if there is a matching order at your price.

3. Strategically choose prices — set your limit order to be attractive to the counterparty:

   • For buying (long): set the price below the current best bid
   • For selling (short): set the price above the current best ask

Important: If a limit order executes immediately despite the passive mode, it will be reclassified as a taker order and will incur the higher fee.

Final Recommendations

Choosing between maker and taker is not just about convenience; it’s a strategic decision that affects your trading efficiency. Makers require planning and patience but reward you with lower fees and the ability to influence market spreads. Takers guarantee immediate execution but at a higher cost.

Before engaging in active trading, ensure you fully understand the fee structure on your platform. Analyzing these costs will help you optimize your strategy, choosing between maker and taker based on market conditions and your goals. Remember: even small savings on fees through regular trading can significantly increase your overall profit.