What is Taker and Maker?
[Estimated Reading Time: 3 minutes]
In cryptocurrency trading, the terms Maker and Taker are essential for understanding how trades are executed on exchanges like IMBX. These roles impact how your orders interact with the market, as well as the fees you incur. This article explains the concepts of makers and takers, their roles in trading, and how they differ.
Key Differences Between Makers and Takers
What is Maker?
Maker is a trader who adds liquidity to the order book by placing an order that doesn’t immediately get matched with an existing one. Makers “make” the market by creating new orders, which increases market depth and liquidity.
Key Features of Makers:
- Order Type: Typically Limit Orders.
- Execution: The order is added to the order book and waits until a taker matches it.
Example: By placing a limit order to buy 1 BTC at $85,000 (below the current market price of $90,000), you act as a Maker, adding liquidity until the price drops to your order.
What is Taker?
Taker is a trader who removes liquidity from the order book by placing an order that is immediately matched with an existing one. Takers “take” liquidity from the market by fulfilling orders already available in the order book.
Key Features of Takers:
- Order Type: Market Orders or Limit Orders that match immediately.
- Execution: The trade is completed instantly at the best available price.
Example: Placing a market order to buy 1 BTC at $90,000 makes you a Taker, as your order instantly consumes existing liquidity from the order book.
FAQs
- Can a single trader act as both a maker and a taker?
Yes, a trader can act as both, depending on the type of orders they place. For example, a limit order might make you a maker, while a market order makes you a taker. - What are the standard maker and taker fees for spot trading on IMBX?
The standard fee for spot trading is 0.1% for both makers and takers. This rate can be reduced based on your VIP level or by using BGB tokens for payments. - What type of order is commonly associated with being a maker?
Makers typically use Limit Orders, as these are added to the order book and wait to be matched. - What happens when a market order is placed?
When a market order is placed, it is immediately matched with an existing order in the order book, making the trader a taker.
Disclaimer and Risk Warning
All trading tutorials provided by IMBX are for educational purposes only and should not be considered financial advice. The strategies and examples shared are for illustrative purposes and may not reflect actual market conditions. Cryptocurrency trading involves significant risks, including the potential loss of your funds. Past performance does not guarantee future results. Always conduct thorough research, understand the risks involved. IMBX is not responsible for any trading decisions made by users.