Market Makers and Takers

Crypto markets are made up of market makers and takers. Market makers create buy or sell orders that go on the order book, which aren't executed immediately. For example, placing a limit order to sell 1 BTC when the price hits $50,000. These orders create liquidity for the market, making it easier for other traders to buy or sell BTC when the condition is met. Traders that buy or sell instantly are called takers. In other words, takers fill the orders created by the makers.

Exchanges typically incentivize makers to provide liquidity by offering lower fees for their orders. At our product, we offer different fees for makers and takers, with makers incurring smaller fees than takers for VIP users. Let's take a closer look at both roles.

Taker

When you place an order that trades immediately before going on the order book, you are a taker. This is regardless of whether you partially or fully fulfill the order. Trades from market orders are always takers since market orders never go on the order book. These trades "take" volume off the order book and are, therefore, taker trades. Limit Immediate or Cancel (IOC) and Limit Fill or Kill (FOK) orders (accessible via the API) are also always taker orders.

Maker

When you place an order that goes on the order book partially or fully, such as a limit order, any subsequent trades coming from that order will be maker trades. These orders add volume to the order book, help to make the market, and are, therefore, termed makers for any subsequent trades.

Note

A limit Good Until Canceled (GTC) order (accessible via the API) can be traded as both a taker and maker order. Using a limit order does not guarantee that your order will be a maker order. If you want to make sure the order goes on the order book before it is filled, please select "Post only" when placing your order (currently only available on our website and desktop app).