Maker & taker
In short
Makers provide order-book liquidity (resting limit orders); takers consume it instantly (market orders). Exchanges almost always reward makers with lower fees.
The difference sounds small but decides profitability of active strategies: our lab measured taker fees eating half of gross profit.
How do I become a "maker"?
With limit orders that do not fill immediately — they rest in the book and "make" the market.
Related terms
Information, not investment advice. More of this? The newsletter.