Binance, a major cryptocurrency exchange, is introducing a feature called Self-Trading Prevention (STP) to prevent unintentional self-trading and the associated fees. According to their announcement on October 11, this feature will be fully rolled out to all spot and margin trading users on October 26.
Upon implementation, the "Expiry Maker" STP mode will become the default mode for all trading pairs and orders on Binance's spot and margin trading platforms. This feature will allow users to identify orders that have expired due to the STP function through Binance's official website, mobile app, and desktop app by accessing the transaction history page.
The STP feature was initially launched in January 2023 to prevent self-trading, which occurs when API traders intentionally or unintentionally engage in transactions with themselves. It is especially useful for API traders who utilize specific programs to execute automated trades using Binance's trading engine. The STP function is aimed at avoiding self-trading situations that can result in users incurring unnecessary fees.
Binance explained that without STP, unintentional self-trading might take place in a competitive market, such as when orders from different trading desks of the same company with unrelated trading strategies unintentionally interact. While unintentional self-trading is addressed by the STP feature, Binance explicitly prohibits intentional self-trading, which can be seen as a form of market manipulation.
To combat intentional self-trading and other forms of market manipulation, Binance's market surveillance team actively monitors market activity and utilizes various tools to identify and investigate violators. Notably, the STP feature is optional and only becomes effective when enabled by the user.
This move demonstrates Binance's commitment to enhancing the trading experience for its users and maintaining the integrity of its markets.
