Market Makers
“Market makers” refer to traders who make the price and contribute volume to the exchange’s order book.
A trader is a market maker when they submit a limit order and the limit order is rested in the order book, helping to “make the market”. The market maker’s order is fulfilled once the market price reaches their limit price.
To incentivise traders to add liquidity to an exchange’s order book, rebates are given to market makers once their orders are fulfilled.
Interdax offers market makers a rebate of 0.025% of the position value for providing liquidity.
Market Takers
“Market takers” refer to traders who take the price given to them by the market, as well as taking volume off of the order book.
Market takers are associated with market orders, where a trader’s order to buy or sell immediately at the best available price before going onto the order book. A trader is also a market taker if their limit order removes a rested order in the order book.
Since market takers remove liquidity from an exchange’s order book, they are charged a fee when their orders are fulfilled.
Trading fees on Interdax are always taken in BTC and the fee for market takers is 0.075% of the position value.