One of the most common inquiries from traders is, “What are Maker orders and Taker orders?” Traders may notice that the taker fee is always higher than the maker fee. The chart below shows the difference between the two.
|
Maker Order |
Taker Order |
|
|
Definition |
Orders that enter the order book and fill up the liquidity inside the order book before execution |
Orders that execute immediately by taking liquidity out from the order book. |
|
Trading Fee |
0.02% |
0.04% |
|
Order Placement Types |
Limit Orders only |
Can be either Market or Limit Orders |
How does this affect trading? Let’s look at the example below!
Using a BTCUSDT Perpetual Contract as an example.
|
Trading Pair |
BTCUSDT |
|
Contract Size |
2 BTC |
|
Trading Direction |
Long (Buy) |
|
Entry Price |
USD 60,000 |
|
Exit Price |
USD 61,000 |
Trader A opening and closing position via two-way maker orders
|
Fee to Open |
2 * 60000 * 0.02% = 24 USDT |
|
Fee to Close |
2 * 61000 * 0.02% = 24.4 USDT |
|
Unrealized P&L |
2 * (61000 – 60000) = 2000 USDT |
|
Closed P&L |
2000 – 24 – 24.4 = 1951.6 USDT |
Trader B opening and closing position via two-way maker orders
|
Fee to Open |
2 * 60000 * 0.04% = 48 USDT |
|
Fee to Close |
2 * 61000 * 0.04% = 48.8 USDT |
|
Unrealized P&L |
2 * (61000 – 60000) = 2000 USDT |
|
Closed P&L |
2000 – 48 – 48.8 = 1903.2 USDT |
From above example, we can see that Trader A pays a lower trading fee compared to Trader B.
In order to place a maker order, traders need to do the following
- Use a Limit Order inside the order placement zone.
- Select Post-Only
- Set your Limit Order price at a better price point compared to current market prices: Better price for Long (Buy) orders = Lower than best ask prices. Better price for Short (Sell) orders = Higher than best bid prices.
However, please note that if your Limit Orders are executed immediately, they will be considered as taker orders.