It is important to note that Binance strictly prohibits deliberate self-trading on the platform, classifying it as a form of market manipulation.
Leading global cryptocurrency exchange Binance is set to launch its Self-Trade Prevention (STP) feature to help users reduce unnecessary self-executed orders and related transaction fees. The exchange said the tool primarily caters to application programming interface (API) traders who use automated trading programs with its trading engine.
According to an official announcement on October 11, this new functionality will be available to all users engaged in spot and margin trading on October 26.
Binance Users Can Now Check Expired Orders
company Said Upon full integration later this month, the “Expire Maker” STP mode will become the default setting for all trading pairs and orders on Binance’s spot and margin trading platforms.
Users can check the orders that have expired due to the STP function on the Binance official website, Binance app and Binance desktop app through the transaction history page.
Binance first introduced the tool in January 2023, and it is specifically designed to prevent the execution of orders that could lead to self-trading. Later in August, the company launched the STP facility for USD-margined futures on the API. This tool allows users to turn this feature on or off as needed.
The company has now expanded the service to spot and margin traders to prevent users from incurring unnecessary fees and executing trades unknowingly.
“Without STP, unintentional self-trading may occur in a competitive market. “For example, when orders from different trading units of the same firm, using the same unique UID, are posted to trade with each other as unrelated trading strategies,” Binance said.
Binance monitors for market manipulation
It is important to note that Binance strictly prohibits deliberate self-trading on the platform, classifying it as a form of market manipulation. The Company’s market surveillance team is actively monitoring such activity and other forms of market manipulation.
Binance said the team intentionally uses advanced tools to monitor self-trading and investigate any offenders.
“Our market surveillance team actively monitors market activity to identify deliberate self-trading and any other forms of market manipulation. Binance has extensive tools in place to track deliberate self-trading and investigate offenders,” the company disclosed.
With this implementation of the self-transaction prevention feature, Binance aims to create a more secure and efficient trading environment for its users, especially those engaged in automated trading. The new system will help traders avoid accidental self-trading and related fees, promoting fair and transparent trading practices on the platform.
Chimamanda is a crypto enthusiast and experienced writer who focuses on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed her interest in emerging economies. She combines her passion for blockchain technology with her love for travel and food, bringing a new and fascinating perspective to her work.
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