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Taker

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What Is a Taker in Cryptocurrency Trading?

A taker in cryptocurrency trading is a participant who instantaneously matches an existing order on the order book. Unlike a maker, whose order adds liquidity to the market by remaining on the order book until matched, a taker removes liquidity by promptly fulfilling an existing order.

Key Characteristics

Instant Order Execution:

Takers execute orders at the market price, ensuring immediate fulfillment.

Liquidity Removal:

By matching existing orders, takers remove liquidity from the market.

Fees:

Taker fees are usually higher than maker fees, incentivizing market liquidity.

Impact on the Market

Market Dynamics:

Takers contribute to market efficiency by ensuring prompt order matching and transaction completion.

Fee Structures:

Exchanges often impose higher fees for takers compared to makers, reflecting the value of added liquidity by makers.

Understanding the role of a taker is essential for grasping market operations and fee structures on cryptocurrency exchanges.

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