Cryptocurrency Q&A
Is a limit order a maker fee?
Is a limit order a maker fee?
CryptoDynasty
Sat Aug 31 2024
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7 answers
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Excuse me, could you please clarify for me if a limit order is automatically considered a maker fee in the world of cryptocurrency trading? I've heard that market orders often attract taker fees, but I'm unsure about the distinction when it comes to limit orders and whether they're classified as maker or taker transactions. Could you elaborate on this, and perhaps explain the reasoning behind such categorization? Thank you in advance for your insight.
7 answers
GeishaWhisper
Mon Sep 02 2024
Takers, on the other hand, are traders who execute market orders on the exchange. Market orders are executed immediately at the best available price, allowing takers to enter and exit trades quickly.
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GyeongjuGlorious
Mon Sep 02 2024
Cryptocurrency exchanges are platforms where users can buy, sell, and trade digital assets. They facilitate transactions between buyers and sellers and often impose fees on these transactions.
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RiderWhisper
Mon Sep 02 2024
The fees charged by crypto exchanges can be divided into two categories: maker fees and taker fees. These fees are designed to incentivize users to contribute positively to the market's liquidity.
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CherryBlossomBloom
Mon Sep 02 2024
Makers, or liquidity providers, are traders who place limit orders on the exchange. Limit orders specify the maximum or minimum price at which a trader is willing to buy or sell an asset.
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Michele
Mon Sep 02 2024
By placing limit orders, makers add liquidity to the market, which makes it easier for other traders to execute their trades. As a reward for their contributions, makers are charged lower fees than takers.
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