Maker Fee
Table of contents
Maker Fee is a fee charged by cryptocurrency exchanges to users who provide liquidity by placing limit orders that are not immediately filled. These orders “make” the market by adding buy or sell orders to the order book.
How It Works
When a trader places a limit order that doesn’t get executed right away, they are considered a “maker” of the market. The exchange rewards these users with lower fees since they are contributing liquidity to the market.
Why It Matters
The maker fee system incentivizes traders to provide liquidity, ensuring smoother and more efficient market operations. Lower fees for makers help encourage long-term participation and better market depth.