What is Maker

In simple terms, market makers and takers are traders on an exchange platform. Market makers are usually traders who place limit orders on an order book. Limit orders specify the amount of an asset a trader wants to buy or sell at a specific price. Traders can also be makers if they place some orders that are not fulfilled straightaway. Market makers create liquidity because they facilitate the purchase or selling of assets on an exchange.

On the other hand, a market order is an order that dictates buying or selling an asset directly at the immediate market price. Traders who place market orders fulfill other orders and therefore decrease liquidity. It is possible to place a limit order and still be a taker; the point is that takers fulfill others’ orders from an order book.