A trader who provides liquidity by placing limit orders in the market.
A Maker is a trader who places limit orders that add liquidity to the market. By providing orders that go into the order book rather than executing instantly, makers help create depth and stability in trading pairs.
Makers are essential participants in both centralized and decentralized order-book exchanges.
How Makers Operate
Place limit orders at chosen price levels
Orders sit in the book until matched
Their orders increase available liquidity
Makers often receive reduced trading fees or rebates
Makers “make” the market by ensuring there is supply and demand available for others to trade with.
Maker vs Taker
Maker: Provides liquidity (adds orders)
Taker: Removes liquidity (market orders)
Trading platforms often offer lower fees for makers to incentivize liquidity provision.
Summary
A maker is a trader who adds liquidity by placing limit orders. Their activity stabilizes markets and improves trading efficiency.
