Many beginners get confused about how commissions are actually calculated on the exchange. I've noticed that people often ask about the difference between a maker and a taker. Everything actually makes sense once you understand it.

When you place your order in the order book — you are a maker. You are literally creating liquidity, giving others the opportunity to trade. The exchange usually charges you a maker fee, which is often lower. The logic is simple — the exchange wants more liquidity.

And if you immediately buy or sell at an existing order — you are a taker. You are taking liquidity that someone else has provided. Taker fees are usually higher because you are not adding to the order book, but rather removing from it.

That’s why experienced traders often think about what role they are playing in each trade. If you are a maker, your commission costs are lower. If you are a taker, be prepared to pay more. This significantly affects profitability, especially if you trade frequently. That’s the simple but important difference between a maker and a taker.