Market Taker
In simple terms
A market taker is someone who buys or sells crypto immediately at the current price being offered, rather than waiting for a better deal. Think of it like going to a store and buying an item at the listed price instead of haggling.
Definition
Trader who executes against existing orders on the book.
In depth
A market taker is a trader who executes orders by accepting prices already posted on the order book by liquidity providers (market makers). When a taker submits a buy order at or above the best ask price, or a sell order at or below the best bid price, their order matches instantly against existing limit orders. Takers typically pay higher fees than makers because they provide immediacy and reduce the friction of finding a counterparty, while market makers earn the spread by providing liquidity.
How does Market Taker work?
A taker submits an order that executes immediately against liquidity already sitting in the book. Market orders always do this, and so does a limit order priced at or through the opposite side. The matching engine fills against the best-priced resting orders first, then the next best, until the full size is filled or the order runs out of room. The taker gets certainty of execution but accepts whatever prices the book offers, and exchanges usually charge takers a higher fee because they consume liquidity rather than supply it.
An example
Illustrative figures only. Someone places a market buy for 5 units. The book shows 2 units offered at $100.00 and 3 units at $100.10. The fill is 2 x $100.00 = $200.00 plus 3 x $100.10 = $300.30, or $500.30 in total, an average of $100.06 per unit. At a 0.5 percent taker fee, another $2.50 is charged, bringing the cost to about $502.80.
Figures are illustrative only.
What beginners get wrong
- Every market order is a taker order, so the higher taker fee applies even when the trade is very small.
- A limit order set at or past the opposite quote crosses the book instantly and is billed as a taker, not a maker.
- The price on the ticker is the last trade that happened, not a promise of what the next fill will cost.
- Taking liquidity during thin overnight hours or immediately after news can fill several price levels deep on the same order size.
Related terms
Part of
How does crypto trading and market structure work? — the subject page for trading and market structure, with all 27 of its definitions in one place.
Educational only — not financial advice.