Binance's STP Function to Prevent Unintentional Self-Trades
Cryptocurrency exchange Binance is expanding its tools to prevent trading fees associated with unintentional self-trades. The exchange announced that it will fully roll out the self-transaction prevention (STP) function for all users on its spot and margin trading platforms on October 26. The STP feature aims to block the execution of an order if it would result in a self-trade, helping users avoid unnecessary fees.
Default Mode for All Trading Pairs and Orders
Once the STP feature is live, the "expire maker" STP mode will be the default mode for all trading pairs and orders on Binance's spot and margin trading platforms. Users will be able to check which orders have expired due to the STP function on Binance's official website, Binance App, and Binance Desktop App through the transaction history page.
Targeting API Traders
Binance's STP functionality primarily targets application programming interface (API) traders who use specific programs to automatically execute trades with the exchange's trading engine. Self-trading, whether intentional or unintentional, occurs when an API user or a group of related users trade with themselves. The STP function helps API traders avoid accidental self-trading transactions and the associated fees.
Preventing Market Manipulation
While unintentional self-trades are handled through the STP function, intentional self-trades are prohibited on the Binance exchange. Intentional self-trading, which creates an illusion of trading activity, can be considered a form of market manipulation. Binance's market surveillance team actively monitors market activity to identify intentional self-trading and other forms of market manipulation. The exchange has extensive tools to track intentional self-trading and investigate offenders.
STP Feature Already Available for USD-Margined Futures
Binance previously integrated the STP feature for USD-margined futures on API in August 2023. The STP function is optional and only takes effect when users enable it, according to the exchange.
