Taker Fee
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A Taker Fee is a charge incurred when a trader takes liquidity from the order book by executing an order at the market price.
How Taker Fees Work
When you place a market order that matches an existing limit order on the order book, you are considered a “taker” because you are removing liquidity from the market. The fee is typically higher than the maker fee, as it incentivizes liquidity providers to keep orders on the book.
Why Taker Fees Matter
Taker fees are essential in trading environments because they reflect the cost of executing trades quickly, often without waiting for a better price. Traders should account for these fees when making market orders, as they can impact profitability, especially in high-frequency trading.