What is a maker: the difference between the two main types of orders

On any cryptocurrency exchange, traders encounter two key concepts: maker and taker. What is a maker? Essentially, it’s a market participant who adds liquidity, while a taker consumes it. Understanding these differences is critical for optimizing fees and trading results.

Maker is a liquidity provider in the market

When a trader places a limit order that awaits execution, they become a maker. A maker is a participant who adds their order to the order book, creating an opportunity for other traders to execute a trade. Maker orders help narrow the spread between bid and ask prices, making the market more stable and liquid.

Since makers essentially act as market benefactors by providing liquidity, exchanges reward such orders with lower fees. A typical maker fee is around 0.01-0.02% of the trading volume, which is significantly lower than taker fees.

Taker is an immediate execution at the current price

The opposite approach is demonstrated by the taker. A taker is a trader who immediately executes an order at the best available price, “taking” the liquidity provided by the maker. Market orders always function as takers, executing instantly against existing orders in the book.

Because a taker is someone who extracts ready liquidity from the market without creating it beforehand, fees for such orders are higher. They usually amount to about 0.05-0.06% of the trade amount. This “penalty” for immediacy is fair: fast execution comes at a cost.

Cost comparison: how order type affects final profit

Let’s consider a practical example on a BTCUSDT contract with a size of 2 BTC, entry at 60,000 USDT, exit at 61,000 USDT:

Trader using maker orders:

• Opening fee: 2 × 60,000 × 0.01% = 12 USDT
• Closing fee: 2 × 61,000 × 0.01% = 12.2 USDT
• Gross profit: 2,000 USDT
• Net profit: 2,000 − 12 − 12.2 = 1,975.8 USDT

Trader using taker orders:

• Opening fee: 2 × 60,000 × 0.06% = 72 USDT
• Closing fee: 2 × 61,000 × 0.06% = 73.2 USDT
• Gross profit: 2,000 USDT
• Net profit: 2,000 − 72 − 73.2 = 1,854.8 USDT

The difference exceeds 121 USDT in favor of the maker approach! At first glance, this may seem small, but with frequent trading and larger volumes, this savings becomes a significant advantage.

Practical example: two trading strategies

Choosing between maker and taker depends on the trader’s goals. If speed of execution and precise entry points are priorities, taker trading is justified despite higher fees. If minimizing costs and maximizing profit are the main goals, maker trading is a strategy that requires patience but yields better results.

How to place maker orders to optimize fees

To ensure your order is executed as a maker, follow these recommendations:

1. Use limit orders — only limit orders can be makers.
2. Set Post-Only mode — this prevents accidental execution as a taker.
3. Place orders strategically:
   • For buying: set the price below the current best bid
   • For selling: set the price above the current best ask

Remember, if a limit order executes immediately against existing orders, it will be classified as a taker, even if you initially intended it as a maker.

Conclusion: why understanding the difference is critical

The distinction between maker and taker is not just a technical detail — it’s a key factor influencing long-term profitability. Makers help the market operate more efficiently and save on fees. Before engaging in active trading, ensure you fully understand the fee structure and consciously choose the appropriate order placement strategy for your trading approach.