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Liquidity Taker Meaning

A trader who "takes" liquidity from the order book or a liquidity pool by executing a "Market Order." A liquidity taker wants their trade to happen right now and is willing to pay the current market price (plus a slightly higher fee) to make it happen. Takers are the opposite of "Makers" (Liquidity Providers).

Without takers, the market would be "stagnant"-there would be a lot of orders sitting on the books but no actual trades happening. Takers provide the "Volume" that market makers need to earn their fees.

In most fee schedules, takers pay a higher percentage because they are "consuming" the stability of the market.

On a decentralized exchange, anyone who performs a "Swap" is acting as a liquidity taker, while anyone who "Adds Liquidity" is acting as a maker.

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