What is the difference between maker fee and taker fee in the world of cryptocurrency?

1 answers

• Feb 18, 2022 · 3 years ago
  Maker fee and taker fee are terms commonly used in the cryptocurrency trading world. The maker fee refers to the fee charged to traders who create liquidity in the market by placing limit orders that are not immediately executed. This fee is usually lower than the taker fee. On the other hand, the taker fee is the fee charged to traders who remove liquidity from the market by placing market orders or limit orders that are immediately executed. It is typically higher than the maker fee. The purpose of these fees is to incentivize traders to provide liquidity and to cover the costs of maintaining the trading platform. By offering lower fees to makers, exchanges encourage them to add liquidity to the market, which improves market depth and stability. Takers, who consume liquidity, pay higher fees as they are taking advantage of the available liquidity provided by the makers. Understanding the difference between maker fee and taker fee is important for traders to effectively manage their trading costs and optimize their trading strategies.
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