Again, depending on the exchange, it may or may not offer advanced order types. On some exchanges, such as Coinbase Pro, the execution could be set to “Post Only” or “Allow Taker”. Post Only execution ensures the limit order is posted to the order book and would sit on the book in order to be charged a Maker Fee, if the order is filled. If the order is partially filled due to the price when arriving at the order matching engine, the order would be rejected. Selecting ‘post only’ is good for those who want to ensure that an order is not subject to Taker Fees, which are charged for stripping or removing liquidity.
On the other hand, if Post Only execution is not enabled, any part of an order that is at a price that would execute immediately, the order will execute immediately and be charged Taker Fees. Any remainder of the order would remain on the order book and will be charged Maker Fees if filled.
Moving on, Allow Taker allows the order to be executed regardless of whether the order crosses the spread to fill an existing order. Keep in mind, if any part of the order crosses the bid-ask spread, the portion of the order will be assessed according to the taker fee rate.
“Maker” is derived from the concept of a market maker. Market makers are those who provide liquidity to the market. In the cryptocurrency world, a maker is one that places limit orders on the order books. If there are no limit orders sitting on the order books, cryptocurrency prices would be extremely volatile due to the fact that the exchange would try to match market buy orders and market sell orders. That in mind, market makers, those who place limit orders that sit on the order book, would be rewarded with lower fees depending on the exchange for providing liquidity.
On the other hand, those that strip or take liquidity are considered ‘takers’. When you place an order that is immediately executed in its entirety, you would be considered a “taker” and you would pay a “taker fee” for stripping liquidity.