In the realm of trading, the concepts of maker orders and taker orders play crucial roles, shaping how participants engage with the market. These two terms capture distinct approaches to trading execution and carry implications for transaction fees and market dynamics.

 

 

Taker Orders: Prioritizing Immediacy

Taker orders reflect a sense of urgency and immediacy. A taker order is placed by a trader who seeks to execute their order immediately at the current market price. These orders match with existing orders on the order book, thereby "taking" liquidity from the market. Taker orders facilitate swift entry or exit from positions, making them attractive for those who prioritize speed.

Given the immediacy of execution, taker orders may incur slightly higher trading fees (Taker Fee) compared to maker orders to acknowledge the convenience of immediate execution.

 

Maker Orders: Nurturing Liquidity

Maker orders, often associated with market makers, contribute to the liquidity and stability of the market. When a trader places a maker order, they provide liquidity by adding their order to the order book, which remains unmatched until another trader's taker order matches with it. These orders have the potential to influence bid-ask spreads, narrowing the price difference between buy and sell orders.

As a reward for fostering liquidity, traders who place maker orders typically enjoy reduced trading fees (Maker Fee). Maker orders underscore a patient approach to trading, with participants willing to wait for their order to be matched by a taker.

 

 

The following table outlines the differences between the two (2) types of orders:

 

 

*The provided trading fee information pertains to perpetual and futures trading. For a comprehensive overview of the fee structure applicable to all trading products on Bybit, kindly refer to here.

Implications for Trading

Let's examine the example provided below, using a BTCUSDT Perpetual Contract as an example:

 

 

Trader A: Opening and closing position via two-way maker orders

 

 

Trader B: Opening and closing position via two-way taker orders

 

 

Based on the example above, we can see that Trader A incurs a lower trading fee than Trader B, leading to a more favorable net closed Profit and Loss (P&L). 

This highlights the significance of comprehending trading fees before engaging in trades. Understanding fees ensures that traders can optimize their trading strategies and outcomes by making informed decisions that consider these costs.

 

To execute a maker order, traders should follow these steps:

• Utilize a Limit Order within the order placement zone.
• Select Post-Only
• Set your Limit Order price strategically, aiming for a more advantageous price compared to the present best available price.

For Buy Long Orders: Opt for a price lower than the best ask prices.

For Sell Short Orders: Choose a price higher than the best bid prices.

 

It's important to note that if your Limit Orders are executed immediately, they will be categorized as taker orders and promptly canceled due to Post-Only selection. Click here to find out more about why Limit Orders may unintentionally be executed immediately. 

 

Notes:

— Closed P&L records your position's final profit and loss amounts after taking fees into consideration.

— Bybit adopts the same maker and taker fee structure for all trading pairs on the platform.