Binance is introducing a new feature called “self-transaction prevention” (STP) to help users avoid incurring trading fees due to accidental self-trades.
All users who are engaging in spot and margin trading will be able to avail it starting from October 26.
As announced on October 11, with this update, the default mode for all trading pairs and orders on Binance’s spot and margin trading platforms will be the “expire maker” STP mode.
Users can check which orders have been cancelled due to the STP feature on Binance’s official website, mobile app, and desktop app through the transaction history page once the feature is live.
Binance introduced the STP functionality in January 2023 to prevent the execution of orders that would result in self-trades. The function targets application programming interfaces (API traders) to execute trades on the exchange.
Self-trading can occur when these automated traders unintentionally or intentionally trade with themselves. The STP function helps API traders avoid such accidental self-trades and the associated fees.
Unintentional self-trading transactions are managed through the Straight-Through Processing (STP) system, but intentional self-trades are not allowed on the exchange. Binance considers intentional self-trading, which aims to create a false appearance of trading activity, as a type of market manipulation.
The exchange has a dedicated team that actively monitors market activity to detect intentional self-trading and other forms of market manipulation. Binance possesses a wide array of tools to identify and investigate those involved in intentional self-trading.
As mentioned earlier, Binance introduced the STP feature for USD-margined futures via API in August 2023. It’s important to note that the STP feature is optional and only comes into play when users choose to enable it.
Also Read: Binance Announces To Launch CR7 ForeverZone NFT Collection
