Cryptocurrency Q&A
What is an example of a maker fee?
What is an example of a maker fee?
Chiara
Wed Sep 04 2024
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7 answers
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Could you provide an illustration of what a Maker fee entails in the world of cryptocurrency trading? I understand it's related to market-making activities but a concrete example would really help me grasp the concept better.
7 answers
Valentina
Fri Sep 06 2024
Among the various cryptocurrency exchanges available, BTCC stands out as a top-tier platform offering a comprehensive suite of services to its users. These services encompass spot trading, futures trading, and secure wallet solutions, among others.
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Raffaele
Fri Sep 06 2024
Under Tier 1, for instance, the fee for a maker order, which is an order that adds liquidity to the market by being the first to place a limit order at a price that has not yet been matched, is set at 0.10%. This fee is designed to reward traders who help maintain a healthy order book.
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NavigatorEcho
Fri Sep 06 2024
In contrast, the fee for a taker order, which removes liquidity from the market by matching an existing order, is typically higher. In Tier 1, a taker order would incur a fee of 0.20% for the same trade size as a maker order.
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SamsungSpark
Fri Sep 06 2024
Cryptocurrency trading platforms often implement a maker-taker fee structure to incentivize liquidity and market efficiency. One prominent example of this fee model can be observed on Binance, one of the leading exchanges in the industry.
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KatanaSwordsmanshipSkill
Fri Sep 06 2024
This fee differential serves as an incentive for traders to place Maker orders, as they can save on fees while simultaneously contributing to the market's liquidity.
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