Taker
A trader whose order immediately executes against a resting limit, removing liquidity from the book and typically paying a fee.
A taker removes liquidity from the order book by submitting an order that immediately matches against a resting order. Market orders are always takers; aggressive limit orders that cross the spread are also takers.
On maker-taker exchanges, takers pay a fee for consuming available liquidity — the flip side of the maker rebate. The combined spread and taker fee is the true minimum cost of immediate execution.
Payment for order flow (PFOF) in U.S. equities means retail market orders are often sold to wholesalers who pocket the spread, effectively making retail traders involuntary takers even when spread-quoted fills look fair.
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.
BeginnerMaker
A trader whose limit order rests in the order book, adding liquidity and typically earning a fee rebate on maker-taker exchanges.
IntermediateMaker-Taker Fees
A two-sided fee model where liquidity providers (makers) earn rebates and liquidity takers pay fees.
AdvancedMarket Order
An order to buy or sell immediately at the best available price. Guarantees execution but not the fill price.
BeginnerMarketable Limit Order
A limit order priced at or through the current best opposite quote — it acts like a market order but protects against extreme fills.
IntermediateOrder 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.
AdvancedPayment for Order Flow (PFOF)
Compensation a broker receives for routing customer orders to a wholesaler, who fills them internally and pays the broker for the flow.
IntermediatePost-Only Order
A limit order that is automatically canceled if it would execute immediately — ensuring it rests in the book and earns maker status.
AdvancedSlippage
The difference between the expected fill price and the actual fill price. Positive slippage benefits you; negative slippage costs you.
Beginner