In an effort to prevent unnecessary trading fees resulting from unintentional self-trades, cryptocurrency exchange Binance is expanding the implementation of its self-transaction prevention (STP) feature. This tool, introduced in January 2023, is designed to block the execution of orders that could lead to self-trading.
Binance has announced that on October 26, 2023, it will fully roll out the STP function for all spot and margin trading users. This initiative aims to enhance the trading experience for its users by avoiding accidental self-trading and the associated fees.
The “expire maker” STP mode will become the default setting for all trading pairs and orders on Binance’s spot and margin trading platforms. This means that when a user places an order, the system will automatically check for potential self-trading scenarios and prevent the execution of such orders.
Once the STP feature is live, users will be able to review their transaction history and check which orders have expired due to the STP function. This information will be accessible through the Binance official website, Binance App, and Binance Desktop App.
![Binance Takes Steps to Prevent Self-Trading with New Feature image 62](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-62.png?resize=1024%2C576&ssl=1)
![Binance Takes Steps to Prevent Self-Trading with New Feature image 62](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-62.png?resize=1024%2C576&ssl=1)
API traders, who employ specific programs to automatically execute trades using an exchange’s trading engine, are the primary beneficiaries of Binance’s STP functionality. Self-trading can occur when unrelated API users or trading units execute trades with each other either intentionally or unintentionally.
The STP feature is especially useful in competitive marketplaces where trading units of the same entity, utilizing unrelated trading strategies, might accidentally trade with each other. Without STP, this could lead to unintended self-trading, incurring unnecessary fees. The STP feature mitigates such risks.
Binance takes market integrity seriously and actively monitors trading activities to identify intentional self-trading and other forms of market manipulation. Intentional self-trading aimed at creating a deceptive appearance of trading activity is considered market manipulation and is strictly prohibited.
It’s essential to note that the STP feature was previously integrated into USD-margined futures on Binance’s API in August 2023. Importantly, the STP function remains optional, and users can enable or disable it based on their preferences.
In conclusion, Binance’s commitment to enhancing the trading experience for its users through the STP feature demonstrates its dedication to providing a secure and transparent trading environment, while also preventing unintentional self-trades and the associated fees. This move aligns with Binance’s ongoing efforts to promote trust and integrity within the cryptocurrency market.
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