Binance, one of the largest cryptocurrency exchanges, is expanding its self-transaction prevention (STP) function to prevent unnecessary trading fees associated with unintentional self-trades. The STP functionality will be fully rolled out for all users of spot and margin trading on Binance’s platform on October 26.
The “expire maker” STP mode will become the default mode for all trading pairs and orders on Binance’s spot and margin trading platforms. This feature is designed to block the execution of an order if it would result in a self-trade. Self-trading occurs when an API user or a group of related users trade with themselves, either intentionally or unintentionally.
The STP feature helps API traders avoid accidental self-trading transactions, reducing the risk of unnecessary fees associated with such transactions. Users will be able to check which orders have expired due to the STP function on the Binance official website, Binance App, and Binance Desktop App through the transaction history page.
Binance Takes Aim at Unintentional Self-Trades with New Feature
While the STP function addresses unintentional self-trading, intentional self-trades are prohibited on the exchange, as they 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 emphasizes its commitment to preventing and investigating intentional self-trading.
This move is part of Binance’s ongoing efforts to enhance the user experience and provide tools that contribute to a fair and transparent trading environment.