What is Taker and Maker? – VOOX

The cryptocurrency trading market consists of makers and takers. The terms Maker and Taker are essential for understanding how trades are executed on VOOX. These roles impact how your orders interact with the market, as well as the fees you incur.

As a trader, you’ll probably act as both at some stage. Makers and takers are the lifeblood of many trading platforms, and their presence (or lack of it) separates strong exchanges from weak ones.

What is Maker?

Makers, also known as liquidity providers, are users who place limit orders (buy or sell) that are away from the market price. If there are no matching orders available, their orders will remain on the order book, waiting for other users to trade against them. Makers “make” the market by creating new orders, which increases market depth and liquidity.

In simpler terms, Makers are individuals or firms who place limit orders that go on the order book. They add volume to the order book to provide market depth and passively wait for execution.

Key Features of Makers:

Order Type: Typically Limit Orders.
Execution: The order is added to the order book and waits until a taker matches it.

Example: By placing a limit order to buy 1 BTC at $105,000 (below the current market price of $110,000), you act as a Maker, adding liquidity until the price drops to your order.

What is Taker?

Takers, also known as liquidity consumers, are users who place orders (buy or sell) to match existing orders on the order book at the current market price. Takers “take” liquidity from the market by fulfilling orders already available in the order book.

In simpler terms, Takers are individuals or firms who place market orders and consume the existing market liquidity by immediate execution.

Key Features of Takers:

Order Type: Market Orders or Limit Orders that match immediately.
Execution: The trade is completed instantly at the best available price.

Example: Placing a market order to buy 1 BTC at $110,000 makes you a Taker, as your order instantly consumes existing liquidity from the order book.

Key Differences Between Makers and Takers

Aspect	Makers	Takers
Market Role	Add liquidity by placing orders that stay in the order book until matched.	Remove liquidity by fulfilling existing orders in the order book immediately.
Order Type	Use Limit Orders that specify a desired price and wait to be fulfilled.	Use Market Orders or instantly executable Limit Orders.
Trade Execution	Trade execution may take time as orders wait for a match.	Trade execution is instant at the best available price.

How to Know If You're a Maker or a Taker

The simplest way to know whether you are a maker or a taker is by learning their concepts and characteristics. A maker is someone who creates an order, providing liquidity and the best possible execution price to the market. On the other hand, a taker is someone who immediately completes an order, consuming existing liquidity rather than contributing to it.

If the order you placed does not appear on the order book and is immediately filled, you are undoubtedly a taker. This is why market orders are classified as taker orders, as they are designed for immediate execution.

If the order you placed is not immediately filled but appears on the order book, it increases the order quantity on the order book, thereby contributing liquidity to the market. Hence, your trade is considered a maker order.

FAQs

Can a single trader act as both a maker and a taker?
Yes, a trader can act as both, depending on the type of orders they place. For example, a limit order might make you a maker, while a market order makes you a taker.
What are the standard maker and taker fees for spot trading on VOOX?
VOOX applies a tiered fee structure for spot trading. For details, please refer to the article 「Calculation of Fees in Spot Trading」
What type of order is commonly associated with being a maker?
Makers typically use Limit Orders, as these are added to the order book and wait to be matched.
What happens when a market order is placed?
When a market order is placed, it is immediately matched with an existing order in the order book, making the trader a taker.

Risk Disclaimer

Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. VOOX is not responsible for any losses you may incur.

VOOX attaches great importance to compliance and has strictly abided by local regulations. Please obey local laws and regulations in your country or region. VOOX reserves the right in its sole discretion to amend, change, or cancel this announcement at any time and for any reason without prior notice.