What is a Taker order? Understand the cost differences between instant execution and delayed order placement

In cryptocurrency trading, Taker orders and Maker orders are two of the most frequently mentioned yet often confused concepts. Simply put, a Taker order is the order type you choose when you want to execute immediately at the current market price, while a Maker order is an order you place with the willingness to wait for someone else to match with you at your specified price. These two order types not only differ fundamentally in execution speed but also directly impact the trading fees you pay, ultimately affecting your final profit.

Core Features of Taker Orders: Speed-First Trading Choice

Taker orders represent a desire for instant execution. When you place a Taker order, it immediately matches with existing Maker orders on the order book, meaning you are “taking” liquidity from the market—drawing liquidity from the prices already posted by others. This quick execution comes at a cost: Taker orders typically pay higher trading fees.

From a trader’s perspective, there are two common scenarios for choosing Taker orders: first, when a sudden market opportunity appears that you believe is too good to miss; second, when you need to close a position urgently to manage risk, where speed outweighs cost. Taker orders can be market orders (executed immediately at the best available price) or limit orders set above or below the current market price (as long as they meet the immediate execution condition).

Advantages of Maker Orders: Earning Fee Discounts Through Patience

In contrast to Taker orders, Maker orders embody a more patient trading philosophy. When you place a Maker order, you are adding liquidity to the market—your order is added to the order book, waiting for a Taker to match with you. This process requires time and patience, but as a reward for providing liquidity, platforms typically offer lower trading fees.

Maker orders are usually limit orders and must be placed “outside” the current best bid or ask—meaning, for a buy order, the price should be below the current best ask; for a sell order, above the current best bid. Some platforms also offer “Post-Only” options, ensuring your order will not execute immediately, guaranteeing you the lower Maker fee rate.

Real-World Comparison: Why the Same Trade Can Yield Different Profits

Let’s look at a real example to see how the difference in Taker and Maker fees impacts your returns. Suppose you are trading a perpetual BTCUSDT contract, buying 2 BTC at an entry price of $60,000, and closing at $61,000:

Using a Maker order:

• Opening fee: 2 × 60,000 × 0.02% = $12
• Closing fee: 2 × 61,000 × 0.02% = $12.20
• Gross P&L: 2 × (61,000 - 60,000) = $2,000
• Actual profit: $2,000 - $12 - $12.20 = $1,975.80

Using a Taker order:

• Opening fee: 2 × 60,000 × 0.055% = $66
• Closing fee: 2 × 61,000 × 0.055% = $67.10
• Gross P&L: 2 × (61,000 - 60,000) = $2,000
• Actual profit: $2,000 - $66 - $67.10 = $1,866.90

With the same market conditions and a $1,000 profit, executing as a Taker results in $108 less profit. If you trade frequently, this difference multiplies significantly. That’s why understanding the distinction between Taker and Maker is not just theoretical knowledge but a practical skill that directly impacts your earnings.

How to Optimize Your Order Strategy

Now that you understand the differences between Taker and Maker, the question becomes: when should I use which?

The simplest rule is: Use Maker whenever possible. If your trades are not extremely time-sensitive, placing a limit order slightly better than the current market price and waiting for it to fill can save you substantial fees. Many successful traders follow this approach:

1. Use limit orders instead of market orders, setting the price just better than the current best available price.
2. Enable “Post-Only” options to ensure your order does not execute immediately as a Taker.
3. Be patient and wait unless market conditions clearly demand immediate action.

However, when speed is critical—such as during sudden market surges or crashes, or when you need to close a position immediately to manage risk—choosing a Taker order is the right decision. After all, at certain moments, paying a 1% fee is much cheaper than risking a 10% adverse move.

Tips

Recognizing the cost differences between Taker and Maker is the first step toward smarter trading. Before placing each order, take a moment to ask yourself: “Why am I executing this way? Do I really need immediate execution?” The answers often help you save significant fees and boost your profit margins.