Differentiate between Taker and Maker Fees in a Futures Market.
Taker fees are paid by traders who place orders that are immediately filled against existing orders on the order book, thus 'taking' liquidity. Maker fees are paid by traders who place limit orders that add liquidity to the order book, which are not immediately filled.
Exchanges often charge lower maker fees, or even offer rebates, to incentivize liquidity provision.
Glossar
Taker and Maker Fees
Fee ⎊ Taker and maker fees represent the two primary transaction costs on a derivatives exchange, designed to differentiate between orders that add liquidity and orders that remove it.
Maker Fees
Incentive ⎊ Maker fees, within cryptocurrency exchanges and derivatives platforms, represent a compensation mechanism paid by liquidity providers ⎊ those who place limit orders that are not immediately executed ⎊ to those who take liquidity via market orders.
Taker Fee Impact
Mechanism ⎊ Taker Fee Impact represents the quantifiable cost incurred by traders who actively ‘take’ liquidity from an order book, rather than providing it; this cost manifests as a fee paid to liquidity providers, influencing order execution prices and overall market efficiency.