What are Maker and Taker? How to calculate the handling fee? A list of handling fees on popular exchanges

Table of contents

• What are Maker and pending orders? How to calculate Maker Fee
• Maker Fee Calculation Formula
• Is it necessary to use a limit order a Maker?
• What are Taker and Eat Order? How to calculate Taker Fee
• Taker Fee Calculation Formula
• How to determine whether you are a Maker or Taker
• Lazy Pack – Maker/taker fees for each virtual currency exchange
• Spot maker/taker fee lazy pack
• Contract maker/taker fee lazy pack
• How to reduce Maker/Taker transaction fees
• Can you make money by placing an order?
• Lazy Pack – Exchange organization that provides negative Maker handling fees
• What is the "Maker" function?

Many novice users who are new to the encryption world have heard of the words Maker and Taker, but in fact they may not know much about their specific scenarios. In addition, some users also have various doubts about the conversion between Maker and Taker. For example: I was Maker when I was placing an order, but why did I become Taker when I finally made a deal?

• Maker is the person who creates depth for exchanges, and Maker orders appear in the order book and will not be sold immediately.
• Taker is someone who eats the depth of the exchange. Taker orders will be traded immediately and will not appear in the order book.
• Maker fees are usually lower than Taker fees, and some exchanges even offer negative Maker rates, that is, you can earn a handling fee after Maker orders are completed.
• Users can switch between Maker and Taker identities through different order functions. This order is Maker, so the order you place can be Taker. Even in the same order, it is Maker when opening a position, and it can be Taker when closing the position.

What are Maker and pending orders? How to calculate Maker Fee

Maker is a pending order, also known as a liquidity provider. Specifically, it means that a user posts a certain quantity and price order, but there is no matching order in the market. Then this entrusted order will always be placed on the exchange's trading, waiting for other users to complete the transaction, which is equivalent to providing liquidity to the entire market, so it is called Maker.

To put it simply, Maker is actually the person who puts limit orders and waits for transactions. They provide market depth and are passive transactions. A limit order refers to a user buying or selling at the price of the digital currency specified by him, and the transaction can be completed when the market price fluctuates to the price set by the user.

So, let’s give an example to explain in detail how to make a Maker:

Taking using USDT to make the Maker to buy CET in the CET/USDT spot market as an example, the operation is roughly divided into the following steps:

• Assume that the latest transaction price of the CET/USDT market is 0.076502, and the current selling price is 0.076502, as shown in the figure;
• Select the [Price Limit] entrust type to [Always Valid];
• Set [buy price] and [buy volume], assuming that when the CET price fluctuates to 0.076430, buy 500;
• Confirm [Transaction Volume] and finally click [Buy CET].

After the commission is successfully set up, the order will be sent to the market and is in the position of buying 1. When the market price of CET fluctuates to 0.076430, the order will be gradually traded, realizing the entrusting strategy of makingr's price limit buying, while the same is true for the price limit selling.

Maker Fee Calculation Formula

The calculation formula of Maker Fee (only-party handling fee) is: transaction volume × Maker handling fee

• Example 1: User A traded an order worth USDT in the form of a pending order. The Maker fee charged by the exchange he used was 0.1%, so the handling fee for this order = 100 × 0.1% = 1 USDT

• Example 2: User B traded an order worth USDT in the form of a pending order. The Maker fee charged by the exchange he used is - 0.1%, so the handling fee for this order = 100 × - 0.1% = - 1 USDT. This thought that User B earned a USDT handling fee through this transaction.

Is it necessary to use a limit order a Maker?

The answer is no. The basis for judging whether it is a Maker is whether your order has created depth for the exchange. It can be simply understood as whether your order is immediately traded. When the limit price set by your order is exactly equal to the best market price, or even worse than the best price, then the limit order will be automatically sold at the best market price. The handling fee at this time is calculated in Take r, not Maker.

For example, if you place an order of USDT of 30,000 USDT, you can sell 1 Bitcoin, but the current market optimal price is 20,000. At this time, the exchange will not really buy your Bitcoin at a price of USDT of 30,000 USDT per card, but will be sold at USDT of 20,000 USDT of the market optimal price. The method for calculating the handling fee you need to give at this time is not 20,000 × Maker handling fee, but 20,000 × Taker handling fee.

What are Taker and Eat Order? How to calculate Taker Fee

Taker is a order taken, also known as a liquidity consumer. It means that users actively place a certain number of orders by checking the existing order prices in the exchange market, and immediately trade with existing orders posted, consuming liquidity in the market.

Simply put, Taker refers to the person who immediately places an order and queues up to make a deal and takes away the market depth, which is an active deal.

How to set up Taker? Let's give examples:

Take the use of USDT as a Taker to buy CET in the CET/USDT spot market as an example. The operation is roughly as follows:

• Assume that the latest transaction price of the CET/USDT market is 0.075433, and the current selling price is 0.075507, as shown in the figure;
• Select the [Price Limit] entrust type to [Always Valid];
• Set [buy price] and [buy volume], the purchase price is the current selling price of 0.075507, and the purchase volume is 99 CET;
• Confirm [Transaction Volume] and finally click [Buy CET];

After the commission is successful, the order will also be delivered to the market. Since the purchase quantity is less than the selling quantity, the order will be sold immediately at a price of 0.075507, realizing the entrusting strategy of Taker's price limit buying, and the same is true for Taker's price limit selling.

Taker Fee Calculation Formula

The calculation formula for Taker Fee (eating single-party handling fee) is: transaction volume × Taker handling fee

• Example 1: User A traded an order worth USDT in the form of a market price. The Taker fee charged by the exchange he used was 0.2%, so the handling fee for this order = 100 × 0.2% = 2 USDT

How to determine whether you are a Maker or Taker

Lazy Pack – Maker/taker fees for each virtual currency exchange

Spot maker/taker fee lazy pack

For ordinary users, the lowest spot handling fees are Binance, Kucoin, Bybit and Bitget.

Contract maker/taker fee lazy pack

For ordinary users, Binance and Bybit have the lowest contract fees.

How to reduce Maker/Taker transaction fees

If you want to reduce the handling fee when trading virtual currencies, there are usually the following methods:

• Register through discount invitation link – Discount code lazy packs on major virtual currency exchanges
• Use platform coins to deduct handling fees
• Become a virtual currency exchange VIP

Can you make money by placing an order?

Someone should have noticed that in Example 2 of the Maker fee calculation method, the Maker fee with a negative number is listed. This is not a typo of the author, but a negative Maker rate that is real in this charging structure.

It can be imagined that if there are many people who place orders on an exchange, the number of orders is large, and the price difference of orders is small, then when a new user enters this virtual currency exchange, will he feel: "Well, the transaction volume of this exchange is large, and I can buy the coins I want quickly and conveniently, which should be trustworthy."

Therefore, many exchanges that adopt the Maker/Taker fee structure will make the Maker's fee rate lower than Taker's fee rate. Even setting the Maker fee to a negative number means that when you place an order and complete a transaction, not only do you not have to give a handling fee, but the exchange will also give you the handling fee in turn.

However, not all users can settle the handling fee at a negative Maker rate. Major virtual currency exchanges will require users to enjoy the discount of negative Maker rates after reaching a certain transaction volume, which is also one of the privileges of VIPs.

Lazy Pack – Exchange organization that provides negative Maker handling fees

What is the "Maker" function?

"Maker only" is an advanced feature in limited orders. It can ensure that your order must appear in the order book and will not match the orders already in the order book, thus ensuring that your transaction fee must be a lower Maker rate.

Generally speaking, there are two purposes for using "Maker only":

• Guaranteed handling fees are lower Maker rates;
• Avoid losses caused by operating errors.

The first point is easy to understand, the Maker rate is usually lower than the Taker rate. Here we will explain the second point below. As we said above, sometimes our price limit trigger price will be set intentionally or unintentionally worse than the market's best price. If it is intentional, it's okay, but if we lose more or less 0 unintentionally, we will suffer losses after the order is executed. So when using the "Maker only" function, if you set up buying a virtual currency at a price higher than the current market price, the system will automatically cancel your order when you place an order, thus avoiding you buying a certain currency at a high price.

Similar functions vary in the names of each virtual currency exchange. Please refer to the lazy bag below for details.

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