Glossary - ChicksX

Taker Fee is a charge incurred by traders who execute orders that remove liquidity from the exchange's order book.

Taker Fee is a cost applied to traders when they execute a market order that matches and removes liquidity from an exchange's order book. This fee is charged because the trader is taking, rather than providing, liquidity. Exchanges often differentiate between taker and maker fees to incentivize liquidity provision. Taker fees are typically higher than maker fees, which are charged to those who add limit orders to the book. Understanding taker fees is crucial for traders aiming to optimize costs and develop effective trading strategies. Always check the fee structure of an exchange before trading to avoid surprises.