Articles on: Spot & Margin Trading

What are Market Makers and Takers

Understanding the roles of market makers and takers helps in comprehending trading dynamics on Fokawa.

Market Makers:Definition: Traders who provide liquidity by placing limit orders on the order book. They create a market by setting buy (bid) and sell (ask) prices.Benefit: They help maintain market liquidity and stability.Fees: Typically lower fees on Fokawa.Definition: Traders who provide liquidity by placing limit orders on the order book. They create a market by setting buy (bid) and sell (ask) prices.Benefit: They help maintain market liquidity and stability.Fees: Typically lower fees on Fokawa.

Market Takers:Definition: Traders who take liquidity by placing market orders that are immediately matched with existing orders on the order book.Benefit: Ensure quick order execution.Fees: Usually higher fees compared to makers on Fokawa.Definition: Traders who take liquidity by placing market orders that are immediately matched with existing orders on the order book.Benefit: Ensure quick order execution.Fees: Usually higher fees compared to makers on Fokawa.

Updated on: 19/06/2024

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