Maker and Taker orders
Cape Crypto uses a maker / taker exchange model. This model provides for 2 traders to trade with each other at the best price possible. Every order that is placed on the exchange that does not fill immediately is a maker order. Likewise, every order that is placed that does fill immediately, becomes a taker order.
Every trade that happens on the exchange occurs between these two traders: the market maker, whose order exists on the order book prior to the trade (ie it did not fill immediately), and the market taker who places an order at the current market price, filling (executing) the market maker's order. On Cape Crypto our market makers pay no fees, and the market taker pays a small trade fee
A market order is an order placed at the current mid market price (the best available price) - and if there is enough liquidity available, fills (executes) immediately. Market orders are therefore market taker orders, and incur the trade fee.
A limit order is an order placed at a specified price, which may or may not be at the mid market price. Placing a limit order that is not at the mid market price, that also does not fill (execute) immediately becomes a market maker order, and therefore does not incur a trade fee. However, if you place a Limit order that matches the mid market price, that offer (or at least a portion of it) will execute immediately, and you will incur the trade fee on the amount that was immediately filled.
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