Maker

Who Is a Maker?

The "maker" is someone who makes an order that does not trade instantly. Therefore, your order remains in the order book and awaits someone else to fill/match it soon, implying that you provide liquidity to the order book. 

While on the other hand, the "taker" is someone who decides to withdraw liquidity from the order book by simply placing an order that is instantly matched with an existing maker order on the order book. It is critical to distinguish between a 'maker' and a 'taker,' as many exchanges use a maker-taker pricing structure, charging separate trading costs to makers and takers.

How a Maker Changes Into a Taker

There is no corresponding order in the order book when the order is placed. The trader is a Maker at this time, but the transaction is performed when a matching order occurs instantly. The trader is then converted from Maker to Taker.