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Orders & Execution

Maker and taker

Intermediate

Also calledmaker feetaker feemakertaker

Makers add liquidity with resting limit orders; takers remove it with market orders and often pay higher fees.

In practice

Exchanges reward the orders that build the book and charge the ones that consume it. A resting limit order that someone else trades against is a maker order; a market order, or a limit order priced to fill at once, is a taker order.

Active traders plan entries and exits with this in mind. Entering with a limit at a level and taking profit with a limit both pay the lower maker fee; only the stop-loss, which must fill, pays the taker fee.

What to watch for

Chasing the lower fee can cost more than it saves. A maker order may not fill at all, and missing a good trade or a needed exit to save a fraction of a percent is a poor exchange.

Entrix Academy

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Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

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