Most of the major crypto exchanges in the world operate under the maker and taker fee mechanism, in which the transaction fee for maker and taker is different.
What is Maker?
The term comes from the idea of a market maker. This is a person who provides liquidity to the market by placing limit orders (buy or sell) on the order book, essentially helping to “make the market”. As a result, they are rewarded with a lower fee to add volume to the order book.
What is Taker?
This is someone who places an order (buy or sell) at the market price, which is immediately filled (i.e. taken). So, because they are taking liquidity out of the market, their fees are often higher than producer fees.
General fee calculation example:
Maker fee is 0.10% on 10,000 USD = 10 USD fee | 9,990 USD net
taker fee 0.20% per 10,000 USD = 20 USD fee | 9,980 USD net
Maker 0.01% off on $5,000 = $0.50 off | 5,000.50 USD net
Taker fee 0.15% on 5,000 USD = 7.50 USD fee | $4,992.50 net
Usually, the maker’s transaction fee will be lower than that of the taker. The cause of this problem is that a “maker” will provide liquidity to the Order book (by placing “orders” that can be executed in the future, this has “created” “marketplace; similar to displaying goods on store shelves). Conversely, when a “taker” receives an order on the Order Book, he or she has consumed some of the liquidity from the Order Book (takes away a portion of the goods from the store).
Users will be considered as a “maker” when they place an order that is not liquidated immediately, then this order will be recorded on the Order Book in a state of pending order matching/completion when someone else accepts it. receive.
“Taker” means someone who is willing to accept an order that can be instantly matched with another available order in the Order Book.
(*Market Orders always come from Takers because Market Orders never enter the Order Book)
Transaction fees are mostly paid as soon as the transaction is executed. The moment the User’s Order is completed/traded, the Order will be listed in one of two categories as “maker” or “taker”. At that time, the user will have to pay 1 of 2 fees for “taker” or “maker”, depending on whether the user is a maker – having an Order on the Order Book, or a taker – who matches the Order.
According to Tapchibitcoin.vn
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