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Maker Fee Meaning

The transaction fee paid by a trader who "makes" liquidity by placing a Limit Order that is not filled immediately. Their order goes onto the "Order Book," providing "Depth" for other traders to trade against.

Exchanges incentivize "Makers" because they make the market look healthy and stable. Therefore, the Maker Fee is almost always lower than the Taker Fee.

On some professional exchanges, makers may even have a "negative fee" (a Rebate), meaning the exchange actually pays them to trade. For a "Market Maker" or a "Trading Bot," the difference between the maker and taker fee is their profit margin.

By exclusively using limit orders and paying the lower maker fee, they can remain profitable even if they are only making a tiny profit on the price movement itself.

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