What Is a “Maker-Taker” Fee Structure Common on Centralized Exchanges?

A maker-taker fee structure is a model where traders who provide liquidity (makers, by placing limit orders) are charged a lower fee or even receive a rebate. Traders who remove liquidity (takers, by placing market orders) are charged a higher fee.

This incentivizes market participants to provide depth to the order book, improving liquidity and reducing the bid-ask spread for all traders.