The largest global cryptocurrency exchange, Binance has inaugurated its Self-Trade Prevention (STP) feature for spot and margin trading. The functionality will block the completion of a self-trade order.
Quick Take:
- Binance will launch the STP functionality for spot and margin trading users on October 26, 2023.
- The feature will assist API users in avoiding any unnecessary charges linked to self-trades.
- The exchange aims to block the way for any intentional and unintentional self-trades on its platform.
In a recent development, Binance is aiming to enhance its user tools for the ease of customers. The STP tool will assist users in avoiding any unnecessary trading fees linked to any unintentional self-trades. The function will be fully available for all spot and margin trading users from October 26, 2023.
As per the blog announcement, the exchange has taken positive community feedback into consideration while making this decision. After complete integration, an Expire Maker STP mode will act as the default mode for all users on Spot and Margin trading platforms. The exchange will provide a total of three modes for trading pairs and orders.
The STP feature will automatically stop the completion of any self-executed order. Thus, helping users to avoid trading fees as well. Moreover, users could also check their expired orders through the STP functionality on all Binance platforms.
An End to self-Trading Transactions by Binance
The STP functionality was introduced by Binance in January 2023. However, it is reaching its completion in October this year. The functionality is designed in a way to target API traders who set up automatic execution of trades on the exchange.
Self-trading usually takes place when API users trade with each other intentionally or unintentionally. Therefore, the STP tool will take charge of preventing any accidental or unwanted self-trading transactions. This can turn out to be a breakthrough for users who struggle with unintentional self-trades, saving them some precious bucks at the end of the day.
Binance has banned any intentional self-trades on its platform. Plus, it is now blocking the way for any unintentional self-trades as well. The exchange believes that an intentional execution of self-trades is a way of manipulating the market, as it creates an illusion of trading activity.
In addition, the exchange claims that its market surveillance team does keep a strict eye on market activity to locate any intentional self-trades made by the users. The platform has a range of tools to track and block such activity and users. However, the STP functionality will make the process more seamless and foolproof.
Binance has led the way for many firms and exchanges in the crypto space with its on-point use of technology to maintain the transparency and integrity of the platform. Therefore, this latest development is also an indication that the exchange is dedicated to staying ahead of the curve in the industry.
