What Is Taker Order?
A taker order removes liquidity from the order book by immediately matching with existing resting orders. Market orders are always taker orders. Limit orders that cross the spread (a buy above the current ask, or a sell below the current bid) also execute as taker orders because they match immediately upon placement.
How Taker Order Works
Taker orders carry higher fees because they consume the liquidity that makers provide. Without takers, the order book would just be static — takers create the trades that generate volume and fee revenue for the exchange. The taker fee compensates the maker for the service of providing liquidity and assuming the adverse selection risk of a resting order.
Why It Matters for Traders
Taker orders guarantee immediate execution at the cost of worse pricing (you pay the spread plus higher fees). Use taker orders when: speed is critical (you need to enter or exit NOW), the spread is tight enough that the cost is acceptable, or you're executing a stop-loss where certainty of execution matters more than optimal price. For everything else, use maker orders.
