Maker and Taker

(Cypher Investor) #1

Will the matching engine ever match one maker with another?

Assuming two users submit matchable orders and both have selected “Maker Only” will the orders be matched by the matching engine and the trade executed?
Or will this result in a 0% spread, maybe this what has been the cause for negative spreads appearing in the orderbook during beta testing?

In other words do all trades require a taker to be executed?

(Apologies if this has been answered elsewhere I couldn’t find a definitive answer)


Both orders can’t be matched in that case because they would both be maker orders. For a trade to be matched and executed you need a maker and a taker.

(Cypher Investor) #3

Thanks for the reply, do you have a link to a source or a quote from one of the team on this? In theory I’d say you’re correct as each trade should require a maker and a taker however if the team wanted to the could implement the matching engine to just match all orders of the same price irrespective of their status as “Maker Only”. Just looking for clarification on this as it’ll have an effect on revenue share, all trades including a taker fee vs some trades including a taker fee could make a huge difference for stakers. Also it’d help explain the orderbook having negative or no spread, if it turns out that the matching engine allows for a negative spread because of “Maker Only” orders then I’d say that it’d be better for those orders to be hidden from the orderbook.

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