Taker and Maker refer to two different types of market participants and describe their role in executing transactions. These terms are often used in the context of cryptocurrency exchanges, but can also be used in other financial markets.

A Taker is a trader who makes a trade by accepting existing orders on the exchange. He executes an order that is already in the order book (order book), and his order is considered a “take order”. The taker actively injects liquidity into the market and immediately executes the trade at the current market price. Such trades can have high fees because the trader is "taking" existing liquidity from the market.

A Maker is a trader who places new orders on an exchange, adding liquidity to the market. He places an order that is pending execution and waits for the taker to accept his order and execute the trade. Maker orders are not instantaneously executed and they create "slack" liquidity in the market. Maker fees are often lower because they promote liquidity and encourage trading on the exchange. The taker-maker model is used to stimulate liquidity on the exchange and manage trading fees.

Some exchanges offer lower maker fees to encourage order placement, thereby improving market liquidity and efficiency. Instant takers pay higher fees because they are tapping into pre-existing liquidity.

It is important to note that the taker-maker model may vary between exchanges and fee terms may vary. Therefore, traders should familiarize themselves with the specific rules and fees that apply at each exchange on which they trade.