š°Maker-Taker Fees: How to Save on Trading Costs š° #quinn_tips
On many exchanges, trades incur maker and taker fees. A maker adds liquidity by placing a limit order that isnāt immediately matched, while a taker removes liquidity by filling an existing order. Maker fees are often lower, sometimes even 0ļøā£ which can help save on costs.
ā¼ļøTo be a maker, your limit order must not be executed right away. ā¼ļø For example, if $ETH is trading at $2,615, placing a limit buy at $2,610 will only fill if the price dips, earning you lower fees. On the other hand, a limit order above the market, say at $2,620, will execute immediately, making you a taker and incurring higher fees.
Of course, there are times when a taker order makes sense, like when you want to jump on a trade right away. But with my trading style, itās rarely necessary, as the market often pulls back, giving me a chance to catch up with the trend.
Youāve been wondering who these mysterious market makers are? Now you knowāitās me, when I place my orders properly. šš
Join me in the secret society of market makersāš©
