What is a contract Maker? What is the difference between it and Taker?

In contract transactions, participants are divided into the contract maker (Maker) and the contract recipient (Taker). Maker is responsible for setting contract terms, including transaction price, expiration time and settlement method. Taker is responsible for accepting the contract and does not have to bear the responsibility for setting terms. In the market, Maker usually has strong market judgment and risk tolerance, while Taker prefers to follow market trends and seize instant returns opportunities.

What are contract Maker and Taker?

In futures or options markets, a contract refers to a standardized agreement with specific terms and conditions that stipulate the rights and obligations of buyers and sellers to perform their obligations in the future. Depending on how the contract is created, participants can be divided into Maker and Taker.

Maker

Maker is the person who actively creates contracts. They specify terms such as the price, quantity and expiration date of the contract. Maker creates market liquidity, providing trading opportunities for other participants. They can create contracts by providing a pay order or a sell order, respectively, indicating their willingness to buy or sell assets at a specified price.

Taker

Taker is the person who trades in an existing contract created by Maker. They accept the terms provided by Maker without creating a contract by themselves. Taker provides the market with transaction depth and efficiency, allowing Maker to execute orders quickly.

The difference between Maker and Taker

• Create contract: Maker creates contracts, while Taker trades existing contracts.
• Market Liquidity: Maker creates market liquidity by providing a buy or sell order, while Taker uses liquidity to trade.
• Transaction Cost: Makers can usually receive a refund of transaction fees, while Takers usually have to pay transaction fees.
• Market impact: Maker creates prices, while Taker responds to prices.

Where is the contract traded? :

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SummaryMaker is to create a contract people, provide market liquidity. Taker is the person who trades in existing contracts, providing transaction depth and efficiency. The difference between Maker and Taker is the way they create or respond to contracts and their impact on market liquidity.

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