Definition
While trading any asset, a taker is an individual that places an order that matches an existing order available in the order book on an exchange portal. For whatever reason, one becomes a taker by placing an order that gets traded instantly for the aforementioned reason.
Understanding the term
Emerging financial markets such as crypto consist of both makers and takers. In the simplest sense, traders who either buy or sell instantly because their order’s exact match already exists in the order book are known as “takers”.
Makers are the individuals who create buy/sell orders that are added to the order book. Therefore, it is safe to assume that takers are traders who fill orders from the makers. But it is important to note that takers need to pay a particular fee to get their orders filled immediately.
On different crypto exchanges, the rules regarding takers and the taker’s fee vary a lot. For example, on Binance, any individual whose order gets traded immediately before going on an order book is a taker irrespective of whether their order is partially or fully fulfilled.
Takeaway
Market orders that never go on the order book are placed by takers, as they “take” volume from the order book. Anyone becomes a taker when they place an order that gets traded instantly.