Maker Taker

Definition

Maker taker is a fee model that charges different fees depending on whether you add liquidity (maker) or remove liquidity (taker). A maker posts limit orders that rest in the order book, while a taker crosses the spread and executes immediately.

Why it matters

Maker taker affects true execution cost. Two users with the same quoted spread can face different net costs depending on whether they are paying taker fees or earning maker rebates.

How it connects

• Maker taker changes how you interpret trading fee.

• It interacts with effective spread and price improvement.

Common pitfalls

Assuming you are always maker: Crossing the spread makes you taker.

Ignoring queue and fill risk: Maker orders may not fill.