In trading markets, Maker (liquidity provider) and Taker (liquidity remover) are the core roles in the order-matching mechanism.
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Maker (Liquidity Provider):
Refers to the trader who first submits a limit order. This party sets the desired price and quantity in advance and places the order on the exchange's order book, waiting for execution. If there are no matching orders in the current market, this pending order will remain visible in the exchange's bid/ask lists, providing liquidity to the market.
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Taker (Liquidity Remover):
Refers to the trader who actively executes against existing orders. Such traders place orders (e.g., market orders or aggressive limit orders) based on the available prices in the order book, immediately matching with existing Maker orders. If the Taker's order volume exceeds the available liquidity of the current Maker orders, the unfilled portion—assuming it's a limit order that isn't canceled—will remain in the order book as a new Maker order, awaiting future matching.
In spot trading, the Maker first provides a quoted price. When the price matches, the subsequent Takeractively executes against the existing Maker order, forming the Maker-Taker mechanism in trading.