Maker means pending order
The maker, also known as the liquidity provider, means that the trader hangs out a certain number and price of orders, but there is no matching order in the market, then the order will remain on the exchange's market, waiting for other users to deal with it. It is equivalent to providing liquidity to the entire market, so it is called a “pending order”.
Taker means to take the order
The taker, also known as the liquidity consumer, means that the trader takes the initiative to place a certain number of orders by checking the price of the existing orders in the depth table of the exchange and immediately deals with the existing orders.
How to identify the taker or maker
To identify the maker or taker, the condition would be the status of users when they are trading, in other words, bidding or asking. Now CCFOX provides the choices of Market price order, Limit Price order, and condition order for the user.
- After the user submits the order, then the deal would make according to the latest price, which costs the market liquidity. This will define as Taker.
- After the user submits the order, if the order does not affect immediately, then the order will go to the list and provide the liquidity. This will define as Maker
- The conditional order could separate into two parts, the market price conditional order and limit price conditional order. When the market price matches the condition, the placed order would be activated and current status could define the maker and taker.
- For the conditional market price
- when matching the condition, the system will follow the setting and place the order according to the user selection and cost the liquidity. This action refers to the taker.
- For the conditional limit price
- when matching the condition, the system will follow the setting and place the order according to the user selection. There is no order to match, then it goes to the order list. and provide liquidity. This action refers to the maker.
The conversion between taker and maker
In some cases, both the taker and the maker could convert to the opponent.
Taker to maker
If taker's orders are overwhelming the maker's and the limit price orders are not canceled, then these orders will be placed on the market and wait for trading. At this time, the taker turns to the maker.
Maker to taker
When placing the order, the character is defined as the maker, but instantly there is an order matching. At this time, the users turn their character from maker to taker.
The English manuscripts are all translations of Chinese manuscripts. All of them are subject to the Chinese version. Thank you.