THE CONCEPT OF MAKERS AND TAKERS
(Part 1)
As a crypto trader, are you a maker or taker? Find out
Makers are market makers who provide two-sided markets, and takers as those trading the prices set by market makers. Takers setting market orders pay taker fees, while makers setting limit orders may receive payment for filling orders.
Markets are made up of makers and takers. The makers create buying or selling orders that aren’t carried out immediately (e.g., “sell BTC when the price hits $15k”). This creates liquidity, meaning it’s easier for others to instantly buy or sell BTC when the condition is met. The people that buy or sell instantly are called takers. In other words, the takers fill the orders created by the makers.
Meanwhile, On any kind of exchange (whether Forex, stocks, or cryptocurrency), sellers are matched with buyers. Without these meeting points, you’d need to advertise your offers to trade Bitcoin for Ethereum on social media and hope that someone is interested
Consequently, every market participant falls into at least one of these categories – indeed, as a trader, you’ll probably act as both at some stage. Makers and takers are the lifeblood of many trading platforms, and their presence (or lack of it) separates strong exchanges from weak ones.
Wait for part 2
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