For educational purposes only; not investment advice. Investing may result in loss.
Direct answer
A maker execution adds liquidity to an order book because the order rests before another order matches it. A taker execution removes liquidity by matching an order already on the book. The trading venue applies its maker or taker rate to each fill, so the same order can incur both rates.
Maker and taker do not mean buyer and seller, and the order label alone does not settle the classification. The decisive question is whether a particular fill rested on the book or executed immediately against existing liquidity.
How it works
When an order reaches a central limit order book, any executable portion matches resting orders and is treated as taker flow. An unmatched remainder may rest on the book; if another order later executes against that remainder, that later fill is maker flow.
A market order normally takes liquidity. A marketable limit order can also be a taker, while a non-marketable limit order can become a maker only after it rests. A post-only instruction is intended to prevent an immediate taker fill: depending on the venue, an order that would cross the book is rejected or canceled. Exact behavior must be checked in that venue’s rules.
For a simple spot fill, the fee is usually calculated as executed notional amount x fee rate. The charged asset, rounding method, fee tiers, rebates, and rate-update timing vary by venue and product. Some venues use rolling trading volume to determine a tier. Check the current fee schedule and order preview rather than assuming that a rate seen earlier still applies.
Example
Suppose the BTC/USDT best bid is 60,000 and the best ask is 60,010. A buy limit at 59,990 cannot execute immediately, so it rests. If 2 BTC later sell into it, the executed notional is 119,980 USDT. At a hypothetical maker rate of 0.02%, the fee is 23.996 USDT before the venue’s rounding rules.
Now submit a buy limit for 2 BTC at 60,020 when only 1 BTC is offered at 60,010 below that limit. The first 1 BTC executes immediately as taker flow. If the remaining 1 BTC rests and later fills, that portion is maker flow. At hypothetical rates of 0.05% for taker and 0.02% for maker, the two fees are 30.005 USDT and 12.004 USDT, for a total of 42.009 USDT before rounding. This is why fees are determined per fill rather than once from the original order type.
Risks
- Fee schedules, volume tiers, eligible products, and promotional rebates can change. Verify the current rules for the exact account and market.
- A lower maker fee does not guarantee a lower total cost. Spread, slippage, funding, price movement while waiting, and unfilled quantity can outweigh the fee difference.
- A resting order faces non-execution and adverse selection: it may fill when informed or urgent traders expect the price to keep moving against it.
- A maker rebate, where offered, is not risk-free profit. Inventory exposure, hedging costs, cancellation latency, and platform rules still apply.
Digital assets can be highly volatile. The CFTC warns that cash-market platforms may lack customer protections and can expose users to manipulation, flash crashes, cyber risk, and platform failure. Maker/taker pricing does not reduce those risks.
Common misconceptions
Misconception 1: Every limit order is a maker order
A limit order that crosses the book can execute immediately as taker flow. Only a portion that first rests and later fills qualifies as maker flow under the venue’s rules.
Misconception 2: Buyers are makers and sellers are takers
Either side can add or remove liquidity. A resting sell order can be maker flow, while an immediately executable buy order can be taker flow, and the reverse is also possible.
Misconception 3: The lower fee always produces the better execution
Waiting to earn the maker rate creates execution risk. The market can move away, fill only part of the order, or move adversely just as the order fills. Compare total execution cost, not the fee rate alone.
Misconception 4: A negative maker rate guarantees profit
A rebate is received only on eligible fills and may be smaller than spread losses, adverse price movement, hedging costs, or other charges. No fee schedule turns trading into a guaranteed strategy.
Related topics
Sources
- Coinbase Advanced fees - Coinbase (accessed: 2026-08-21)
- What are Maker and Taker fees? - Kraken (accessed: 2026-08-21)
- Understand the Risks of Virtual Currency Trading - CFTC (accessed: 2026-08-21)