Binance is introducing a Self-Transaction Prevention (STP) feature on October 26 to prevent self-trades among API traders, reducing trading costs and avoiding fees.
- Binance introduces self-transaction prevention (STP) to shield API traders from unintentional self-trades.
- STP, effective from October 26, aims to avert unnecessary trading costs.
- “Expire maker” to be the default STP mode for all spot and margin trading pairs.
- Users can verify expired orders due to STP through Binance platforms.
In a robust move to fortify its trading platform, Binance, a leading cryptocurrency exchange, has announced the forthcoming implementation of a self-transaction prevention (STP) feature, designed meticulously to shield API traders from unintentional self-trades and the consequent unwarranted trading costs. The function, set to be operational from October 26, aims not only to enhance user experience but also to instill a more secure trading environment.
Binance has designated the “expire maker” STP mode as the default for all trading pairs and orders across its spot and margin trading platforms. Post-implementation, users will be bestowed with the capability to validate which orders have expired due to the STP function across various Binance platforms, such as its official website, mobile, and desktop applications, as delineated in the announcement.
Binance Introduces STP to Prevent Self-Trades
Cryptocurrency trade Binance is enhancing its tools to prevent self-trades that incur superfluous trading costs. Binance will implement the self-transaction prevention (STP) feature… #Binance #News #Binance https://t.co/om9SvQBIhn
— CoinXposure (@CoinXposure) October 11, 2023
Dove into the mechanics, the STP functionality, which made its debut in January 2023, operates by preventing the execution of an order if it is poised to result in a self-trade. Such a scenario, known as self-trading, transpires when an API user or a conglomerate of related users engage in trades amongst themselves, either intentionally or inadvertently.
The safeguard provided by STP is particularly critical for API traders, who deploy specific programs to autonomously interact with an exchange’s trading engine. Binance elucidates, “For instance, when orders from different trading units of the same firm, using the same unique UID but with unrelated trading strategies, post orders that trade with one another.”
Binance’s move to embed the STP functionality underscores a vigilant approach towards enhancing user experience and fortifying the trading environment amidst the burgeoning digital currency marketplace. It provides not only a technological shield against potential trading pitfalls but also indirectly safeguards the market from potential manipulations through self-trading activities, thereby cementing a further trust in the platform among its users. As the crypto market continues to evolve and garner attention, such technological advancements and security protocols will prove pivotal in maintaining the integrity and efficacy of trading activities across the board.