Maker
A trader whose limit order rests in the order book, adding liquidity and typically earning a fee rebate on maker-taker exchanges.
A maker is a market participant who places a resting limit order that is not immediately filled. Their order sits in the book and makes liquidity available for others.
On maker-taker fee schedules, makers are rewarded with a rebate for providing this liquidity, because exchanges benefit from having a rich, tight order book. The rebate is typically a fraction of a cent per share or a few basis points per trade.
Understanding maker vs. taker status is essential for high-frequency and active traders where routing decisions meaningfully affect net P&L.
Related Terms
Bid-Ask Spread
The gap between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Crossing it is the minimum cost of an immediate trade.
BeginnerBuy Limit
A limit order to buy at or below a specified price — placed below the current market to enter on a pullback.
BeginnerLimit Order
An order to buy or sell only at a specified price or better. Guarantees price but not execution.
BeginnerOrder Flow
The stream of incoming buy and sell orders hitting the market — analysis of order flow reveals who is aggressive and where price is likely headed next.
AdvancedSell Limit
A limit order to sell at or above a specified price — placed above the current market to exit on strength or short into resistance.
BeginnerTaker
A trader whose order immediately executes against a resting limit, removing liquidity from the book and typically paying a fee.
Intermediate