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

1 answers

• Mustafa AllamJun 02, 2024 · a year ago
  In the context of BYDFi, a maker order is an order placed on the exchange that adds liquidity to the order book. It is called a maker order because it 'makes' the market by providing liquidity for other traders. A taker order, on the other hand, is an order that takes liquidity from the order book. When a taker order is placed, it is matched with an existing maker order, and the trade is executed immediately. The main difference between the two is that a maker order adds liquidity to the market, while a taker order removes liquidity. This difference is important because it affects the fees charged by the exchange. Typically, maker orders have lower fees compared to taker orders. It's worth noting that this distinction between maker and taker orders is not unique to BYDFi and is a common feature in many cryptocurrency exchanges.
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