Maker and Taker Orders

In futures trading, Maker and Taker are used to distinguish whether an order adds liquidity to the market or removes liquidity from it. Different order types usually have different fee rates.

1. What Is a Maker Order?

A Maker order is an order that does not execute immediately and rests in the order book until it is matched.

For example:

• Placing a limit order
• Submitting an order that does not fill immediately

Because these orders provide liquidity to the order book, they usually qualify for lower trading fees.

2. What Is a Taker Order?

A Taker order is an order that executes immediately against existing orders in the market.

For example:

• Using a market order for immediate execution
• Submitting a limit order that fills immediately

These orders remove liquidity from the order book, so the trading fees are usually higher.

3. Maker vs. Taker: Key Differences

In general, you can determine this based on whether the order executes immediately:

• Orders that do not execute immediately and enter the order book are usually classified as Maker orders
• Orders that execute immediately after submission are usually classified as Taker orders

Please note that a limit order is not always considered a Maker order. If a limit order executes immediately after submission, it may still be classified as a Taker order.

4. What Is Post-Only?

Post-Only ensures your order is always submitted as a Maker order and will never execute immediately against existing orders.

When Post-Only is enabled:

• The order will not execute immediately against existing market orders
• The order will enter the order book as a pending order
• Once executed, the order will usually only incur Maker fees

If the system determines that the order would execute immediately after submission, the order will usually be automatically canceled to prevent it from becoming a Taker order.

Simply put, Makers provide liquidity by placing orders into the order book, while Takers consume liquidity by executing against existing orders. Together, they help maintain market liquidity and trading activity.