What Are Maker and Taker? Trading Fees and Order Roles Explained
Maker and taker refer to the two roles a trader can play when an order is executed on a perpetual futures exchange. A maker is a trader whose order adds liquidity to the order book, while a taker is a trader whose order removes liquidity from the order book. These roles determine the fees you pay on each trade, making them an important factor in your overall trading costs and profitability.
How Maker and Taker Work
Makers Add Liquidity
When you place a limit order that does not immediately execute, it sits on the order book waiting for a counterparty. By doing so, you are "making" the market by providing an order that other traders can fill against. Your order adds depth to the book and tightens the spread.
Example: BTC is trading at $50,000. You place a limit buy order at $49,900. This order goes onto the order book and waits. You are a maker.
Takers Remove Liquidity
When you place an order that immediately fills against an existing order on the book, you are "taking" liquidity away. Market orders are always taker orders because they execute instantly at the best available price. Limit orders can also be taker orders if they are priced to fill immediately.
Example: BTC is trading at $50,000. You place a market buy order. It fills instantly against the lowest ask on the book. You are a taker.
Order Type and Maker/Taker Role
| Order Type | Typical Role | Why |
|---|---|---|
| Market order | Always taker | Fills immediately against existing orders |
| Limit order (below ask for buys) | Maker | Sits on the book, adds liquidity |
| Limit order (at or above ask for buys) | Taker | Fills immediately, removes liquidity |
| Stop-market order (when triggered) | Taker | Becomes a market order on trigger |
| Stop-limit order (when triggered) | Usually maker | Becomes a limit order on trigger |
The key distinction is not the order type itself, but whether the order executes immediately. A limit buy order placed above the current ask price will fill instantly, making you a taker despite using a "limit" order.
Fee Differences
Exchanges charge different fees based on your maker or taker role. The typical fee structure looks like this:
| Role | Typical Fee Range | Example Fee | Cost on $10,000 Position |
|---|---|---|---|
| Taker | 0.03% - 0.06% | 0.05% | $5.00 |
| Maker | 0.00% - 0.02% | 0.01% | $1.00 |
Over many trades, this difference compounds significantly. A trader who executes $1,000,000 in volume per month would pay:
- As taker (0.05%): $500 in fees
- As maker (0.01%): $100 in fees
- Savings: $400 per month
Some exchanges offer negative maker fees (rebates), meaning you actually earn money for placing maker orders that get filled.
Practical Impact on Perps Trading
Scalping and High-Frequency Strategies
For traders who open and close positions frequently, the maker-taker fee difference is critical. A scalper targeting $50 per trade in profit on a $10,000 position would lose $10 per round trip as a taker (0.05% open + 0.05% close) versus $2 as a maker. That is the difference between a $40 profit and a $48 profit per trade.
Swing Trading
For longer-term positions held for days or weeks, the entry and exit fee is a smaller percentage of total PnL. However, using limit orders (maker) for entries and exits is still preferable when timing is not critical.
Liquidation Fees
When your position is liquidated, the liquidation is executed as a taker order, meaning you pay taker fees on top of losing your margin. This is another reason to manage your risk and avoid liquidation.
How to Be a Maker More Often
1. Use Limit Orders for Entries
Instead of market-buying BTC at $50,000, place a limit order at $49,950. If the price dips to your level, you enter at a better price and pay maker fees.
2. Use Limit Orders for Exits
When taking profit, set a limit sell at your target price rather than using a market order. Your order sits on the book and fills when the price reaches your target.
3. Place Post-Only Orders
Some exchanges offer a "post-only" order mode that ensures your limit order is only accepted if it will be a maker order. If it would fill immediately (acting as taker), the order is rejected instead. This guarantees you always pay maker fees.
4. Be Patient
Maker orders require the market to come to your price. This means sometimes your order will not fill, and you may miss a trade. The tradeoff is lower fees and often better entry prices.
When Taker Orders Make Sense
Being a taker is not always bad. Situations where taker orders are appropriate:
- Urgent entries: When a breakout is happening and you need to enter immediately
- Stop-loss execution: Your stop-loss should be a market (taker) order to guarantee execution when risk management matters most
- Low-liquidity markets: If the spread is tight, the cost difference between maker and taker is minimal
- Time-sensitive exits: When the market is moving fast against you, waiting for a limit fill can cost more than the taker fee
Related Terms
- Order Book: The list of buy and sell orders where maker/taker dynamics play out
- Limit Order: The order type most commonly associated with maker status
- Market Order: The order type that is always a taker
- Slippage: Taker orders are susceptible to slippage; maker orders are not
- PnL: Fees from maker/taker roles directly affect your profit and loss