Taker Score is a quantitative metric designed to evaluate the aggressiveness or liquidity-consuming behavior of a market participant, often referred to as a “taker.” It measures the proportion and impact of their market orders or immediate-or-cancel orders relative to their total trading activity.
Mechanism
This score is typically calculated by exchanges or liquidity providers using an algorithm that assesses the volume of executed taker orders against resting limit orders. Factors considered often include order size, the rate at which orders are filled, and the observable price impact these orders create. A higher score signifies a greater tendency to remove liquidity from the order book.
Methodology
This metric serves as an analytical tool for market makers to differentiate between various institutional clients or trading algorithms. Liquidity providers may use the taker score to dynamically adjust their pricing spreads or prioritize Request for Quote (RFQ) responses. This enables them to optimize their own risk exposure and profitability by strategically managing interaction with diverse order flow types in crypto markets.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
