Crypto Exchange Binance Implements Self-Transaction Prevention Function
Binance, a popular cryptocurrency exchange, is introducing a new feature called self-transaction prevention (STP) to help users avoid unnecessary trading fees resulting from unintentional self-trades. The STP function will be fully rolled out for all spot and margin trading users on October 26th. With the integration of this feature, 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 will have access to the transaction history page on the Binance official website, Binance App, and Binance Desktop App to check which orders have expired due to the STP function. This functionality was introduced by Binance in January 2023 and aims to prevent self-trading transactions for API traders who use specific programs to execute trades automatically.
Preventing Unintentional Self-Trades
The purpose of the STP function is to block the execution of an order if it would result in a self-trade. Self-trading can occur intentionally or unintentionally when an API user or related users trade with themselves. By implementing the STP feature, Binance helps API traders avoid accidental self-trading transactions and the associated fees.
While unintentional self-trading is addressed through the STP, intentional self-trades are strictly prohibited on Binance. The exchange’s market surveillance team actively monitors market activity to identify intentional self-trading and other forms of market manipulation. Binance has robust tools in place to track intentional self-trading and investigate offenders.
Expansion of STP Feature
Binance previously integrated the STP feature for USD-margined futures on API in August 2023. This functionality is optional and only takes effect when users enable it. By implementing the STP function across spot, margin, and futures trading, Binance aims to provide a more secure and transparent trading environment for its users.
Hot Take: Binance Enhances Trading Security with STP Feature
Binance’s introduction of the self-transaction prevention (STP) function demonstrates its commitment to enhancing trading security and protecting users from unintentional self-trades. By defaulting to the “expire maker” mode for all trading pairs and orders, Binance ensures that users can avoid unnecessary fees associated with self-trading transactions. Additionally, the STP feature prevents intentional self-trades, which can be considered market manipulation. With comprehensive monitoring tools in place, Binance actively monitors market activity to identify any instances of intentional self-trading and other forms of manipulation. The expansion of the STP feature to include spot, margin, and futures trading further solidifies Binance’s dedication to providing a safe and transparent trading environment for its users.
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