Wednesday, August 19, 2020

MCS | What is a Taker Order?

\This post has been written by Hedgehog, an MCS influencer and one of Korea's famous cryptocurrency key opinion leaders.*

https://preview.redd.it/ljo4mokqswh51.png?width=1024&format=png&auto=webp&s=fc5af719b265e43033fb3fef83f119fbe7a438f1

#Be_a_Trader!

Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.

Following my last post about the Maker Order, let me explain about the Taker Order in this post.

👉 MCS | What is a Maker Order? : https://bit.ly/31Z3vwE

Taker orders are really easy to understand if MCS traders have a good understanding of the concept of maker orders. If the concept of placing a maker order is not yet established, I strongly recommend that you first read my maker order post.

🎯 What is a Taker Order?

Taker orders are orders that are executed as soon as you submit your order. Because Taker orders are executed immediately upon submission, they are not piled up in the order book, unlike maker orders, and are called Taker Orders because these orders are simply taking maker orders already placed in the order book so that the Taker Orders are filled immediately.

https://preview.redd.it/ol9oe80sswh51.png?width=617&format=png&auto=webp&s=a0d7d0e21f95a8d5898d7a219abd96b2466e6771

Example) If you have an order book like the one above, and you submit a sell order with a price of $12,362.5 or more, your order will be a Maker order that is accumulated in the order book. However, if you place a sell order for less than $12,362, your order will not be placed in the order book and will be filled immediately with the existing buy balance. In this way, the order submitted and filled by someone else's counter orders in the order book is called a Taker order.

🎯 There is a trading fee for a Taker Order.

Taker orders are executed immediately using up the liquidity provided by fellow MCS traders, so unlike maker orders, you pay a trading fee. In the case of the MCS BTC/USDT Perpetual Contract product, a 0.045% trading fee will be charged since the Taker order trading fee discount event is currently live.

🎯 Maker Order vs. Taker Order

If you correctly understand Maker and Taker orders, one question might pop up in your mind. Is placing a Maker order better or Taker order better? There is no right answer to this question. This is because in some cases Maker orders are better, and in some other cases Taker orders rule.

Maker orders have the advantage of receiving a rebate when someone fills your order, but you have to wait indefinitely for someone to complete your order. The price may move while you are still waiting, and you may miss out on the perfect buy/sell timing. (quite often) On the other hand, there is a drawback of paying a trading fee for Taker orders, but it has a huge advantage that the order is executed as soon as you submit it.

The pros and cons of both Maker and Taker Orders are very clear, so I hope that MCS traders use them wisely in their trading strategies.

In the next blog post, I will tell you about the Hidden Order that others do not cover.

I am a Bitcoin margin trader, Hedgehog. Thank you for reading this post.

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Thank you.

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