Binance launches self-trade blocking for spot and margin trading Cryptocurrency scrgruppen

Cryptocurrency exchange Binance is expanding its range of tools to prevent unnecessary trading fees associated with unintended self-trades.

Binance will fully roll out its self-transaction prevention (STP) functionality to all spot and margin trading users on October 26, the company said. Announce On her blog on October 11.

After the integration, the STP “Expiry Maker” mode will be the default mode for all trading pairs and orders on Binance’s spot and margin trading platforms.

Once the STP feature is activated, users will be able to check expired orders due to the STP function on Binance’s official website, Binance app and Binance Desktop app through the transaction history page, the announcement notes.

foot In January 2023, Binance’s STP function was designed to prevent an order from being executed if it would result in a self-trading. This functionality is aimed at Application Programming Interface (API) traders, who set up specific software to automatically execute trades using the exchange’s trading engine.

Self-trading occurs when an API user or group of related users trades with themselves, intentionally or unintentionally. STP allows API traders to avoid unintended self-trading transactions, helping users prevent unnecessary fees associated with such transactions.

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“Without an STP system, unintended self-trading can occur in a competitive market. For example, when orders from separate trading units of the same company, using the same unique UID, with unrelated trading strategies, orders are posted that trade with each other.” .

While unintentional self-trading transactions are handled through the STP, intentional self-trading is prohibited on the exchange. “When self-trading is done intentionally to create the illusion of trading activity, it can be considered a form of market manipulation,” Binance wrote, adding:

“Our market monitoring team actively monitors market activity to identify intentional self-trading and any other forms of market manipulation. Binance has extensive tools to track intentional self-trading and investigate violators.

As mentioned earlier, Binance Built-in STP feature for USD-margined futures on API in August 2023. “The STP function is optional and only takes effect when users enable it,” Binance noted.

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