April 19, 2024
Binance expands with STP function to stop self-trading fees.
Latest Cryptocurrency News

Binance Announces New STP Function to Prevent Unintentional Self-Trades

Binance, a cryptocurrency exchange, is expanding its capabilities to prevent unnecessary trading fees associated with unintentional self-trades. According to an announcement made on October 11th, Binance is set to implement the self-transaction prevention (STP) function for all spot and margin trading users on October 26th.

After this integration, the default mode for all trading pairs and orders on Binance’s spot and margin trading platforms will be the ‘expire maker’ STP mode. Once the STP feature goes live, users will have the ability to review expired orders resulting from the STP function on Binance’s official website, Binance App, and Binance Desktop App through the transaction history page.

Binance introduced the STP functionality in January 2023, with the primary purpose of blocking the execution of an order if it would lead to a self-trade. This feature is particularly beneficial for API traders who employ automated trading programs with an exchange’s trading engine.

Self-trading can occur intentionally or unintentionally when an API user or a group of related users trade with themselves. The STP function assists API traders in avoiding inadvertent self-trading transactions, thereby preventing users from incurring unnecessary fees. Binance explained that without STP, unintentional self-trading could happen in a competitive marketplace. For example, when orders from separate trading units of the same firm, using the same unique ID and unrelated trading strategies, happen to post orders that trade with each other while unintentional self-trading is addressed through the STP feature, Binance explicitly prohibits intentional self-trades on its platform.

Binance emphasized that when self-trading is done intentionally to create an illusion of trading activity, it can be considered a form of market manipulation. The exchange also mentioned that its market surveillance team actively monitors market activity to identify intentional self-trading and other forms of market manipulation. They possess a range of tools to track and investigate offenders.

Binance had already integrated the STP feature for USD-margined futures on the API in August 2023. It’s important to note that the STP function is optional and only takes effect when users choose to enable it.

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