What Are Maker & Taker

The aim of the Maker-Taker mechanism is to stimulate trading activity within an exchange and keep the price stabilized. 

 

What is Maker?

To place a Maker order, is to place an order at a specified price or amount, and this order will not be executed immediately with other orders in the order book. Instead, it will be pending for execution. These pending orders provide liquidity to the entire market, so they can also be called "liquidity providers".

 

What is Taker?

To place a Taker order, is to place an order at a specified price, and this order will be executed immediately with other orders in the order book. These orders are actively matched and executed with orders in the order book, and they are referred to as "liquidity consumers".