A trade consists of:

• An order (market or limit)
• A counterparty
• Execution price
• Quantity
• Settlement

Trades occur when a buyer's bid meets a seller's ask. Market orders remove liquidity from the book (takers), while limit orders rest on the book and provide liquidity (makers).

This distinction matters because maker–taker dynamics directly influence spreads, exchange fee structures, rebate eligibility, and overall liquidity quality.