Binance, one of the world’s largest crypto exchanges, has enhanced its tools to mitigate unnecessary trading fees linked with unintentional self-trades by fully rolling out its self-transaction prevention (STP) function. This function is aimed at both spot and margin trading users and will become operational on October 26, according to the company’s blog post on October 11.
The STP feature, initially introduced in January 2023, is crafted to impede the execution of an order if it would culminate in a self-trade. This is particularly pertinent for API traders, who employ specific programs to automate trade execution with an exchange’s trading engine. Self-trading transpires when an API user or a collective of related users trade among themselves, either intentionally or unintentionally. The STP thus aids API traders in sidestepping accidental self-trading transactions, thereby safeguarding users from superfluous fees that might be levied with such transactions.
In light of its integration, the “expire maker” STP mode will be set as the default mode for all trading pairs and orders on Binance’s spot and margin trading platforms. Users will be able to discern which orders have expired due to the STP function via the Binance official website, Binance App, and Binance Desktop App, through their transaction history page.
It is pivotal to distinguish that while unintentional self-trading transactions are mitigated through the STP, intentional self-trades are strictly forbidden on the exchange. When self-trading is deliberately executed to fabricate a semblance of trading activity, it may be deemed a form of market manipulation, which is actively monitored and identified by Binance’s market surveillance team. The exchange asserts that it possesses comprehensive tools to trace intentional self-trading and probe offenders.
Binance had previously incorporated the STP feature for USD-margined futures on API in August 2023, where it was optional and only became active when users enabled it. The comprehensive rollout of the STP function across additional trading formats signifies a move by Binance to further solidify protective mechanisms for traders utilizing its platform, especially those engaging with automated trading strategies through APIs. This can be seen as a part of broader initiatives within the cryptocurrency trading industry to enhance user protection, trading fairness, and transparency in the markets.
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