Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.
In society, there are manufacturers and consumers. Manufacturers are the ones that produce a variety of products to provide consumers with a wider selection range to purchase goods and services.
There are traders with similar roles on exchanges. We call them the 'Makers' and 'Takers'.
Who are Makers?
Makers are the ones who add liquidity to the order book by submitting limit or conditional limit orders. Thus, they place orders at a specified price so that trades can be made on the exchange. Therefore they produce the contracts being traded which creates a marketplace. Trades made on MCS are zero-sum trades, which means that there needs to be a maker and a taker in each trade for it to be realized.
Makers pay a negative fee, which is also called a 'rebate'. Similar to a night market, there needs to be a lot of products which can attract many people and create a trade environment. Makers receive a rebate as it is very important to maintain high liquidity in exchanges.
Who are Takers?
Takers are the ones who place orders that are immediately filled against the maker orders and take orders from the order book. Thus, traders that trade on the market are called 'takers' and they consume the liquidity. Regardless of the fact that it is a buy or sell order, orders that trade immediately are taker orders.
Takers have a positive fee rate.
Both makers and takers are essential for the market to run smoothly. Traders can decide whether to receive maker rebates or pay taker fees according to their strategies.
Traders ALWAYS come first on MCS.
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