Maker and Taker: What's the Key Difference and How Does It Affect Your Profit

On cryptocurrency exchanges, there are two types of participants — those who provide liquidity and those who consume it. Makers and takers are not just terms; they represent two fundamentally different trading approaches that influence fee structures and overall outcomes. Understanding these differences is critical for optimizing your trading strategy.

How the Mechanics Work: Takers Take, Makers Provide

When a trader places an order for immediate execution at the current market price, they act as a taker. The taker’s order is instantly matched with existing orders in the order book — the trader simply “takes” the available liquidity. This approach is ideal for those who need to quickly open or close a position, but speed comes at the cost of higher fees.

Makers operate under a different logic. When a trader places a limit order at a price different from the current market price, they add a new level to the order book. Such an order remains there, waiting to be matched with another participant’s order. Makers create liquidity, and the market rewards them — by patiently waiting, traders receive a significant discount on fees. Often, maker fees are two to three times lower than taker fees.

Why Do Fees Differ So Much: Market Economics

The difference in fee sizes stems from the economics of exchange trading. Takers receive immediate execution — convenience costs money. Exchanges want makers to continuously place orders, maintaining a healthy spread between bid and ask prices. Therefore, makers are given discounts — an incentive for providing liquidity, which attracts more participants to the platform.

Practical Comparison: How It Affects Your Income

Let’s look at a concrete example. Suppose a trader opens a position of 2 BTC at a price of $60,000 USDT and closes it at $61,000 USDT. The profit before fees is $2,000 USDT.

Scenario 1: Trader A uses a maker on both sides (opening and closing the position)

Opening fee: 2 × $60,000 × 0.02% = $24 USDT
Closing fee: 2 × $61,000 × 0.02% = $24.40 USDT
Total profit: $2,000 − $24 − $24.40 = $1,951.60 USDT

Scenario 2: Trader B uses a taker on both sides

Opening fee: 2 × $60,000 × 0.06% = $72 USDT
Closing fee: 2 × $61,000 × 0.06% = $73.20 USDT
Total profit: $2,000 − $72 − $73.20 = $1,854.80 USDT

The difference is $96.80 USDT in favor of the maker — nearly 5% of the total profit. Scale this across hundreds or thousands of trades per month, and the savings become substantial.

How to Choose the Right Order Type

For those looking to leverage the advantages of being a maker:

1. Place limit orders — manually set your price, avoiding market orders
2. Use offset orders from the current price — for long positions, set a price below the best bid; for short positions, above the best ask
3. Consider passive orders — some platforms offer a Post-Only option, which guarantees your order is classified as a maker

Important: if a limit order executes immediately, the system may reclassify it as a taker order — prioritizing execution speed over maker status.

Conclusions: Maker or Taker — It’s a Choice, Not an Accident

Choosing between a taker and a maker depends on your trading strategy. If you need speed and guaranteed execution, pay taker fees for instant results. If you’re willing to wait and optimize costs, use makers as the foundation of your approach. On highly profitable markets, every basis point (0.01%) of fee matters. Professional traders carefully balance both types depending on market conditions. Understanding the mechanics of makers and takers is the first step toward maximizing your profits and minimizing trading costs.