It’s important to note that Binance strictly prohibits intentional self-trading on the platform, categorizing it as a form of market manipulation.
Leading global cryptocurrency exchange Binance is set to roll out 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 for Expired Orders
The company said that upon the 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 for orders that have expired due to the STP function on Binance’s official website, the Binance App, and the Binance Desktop App via the transaction history page.
Binance first introduced the tool in January 2023, and it’s specifically designed to prevent the execution of orders that might lead to self-trading. Later in August, the company rolled out the STP feature for USD-margined futures on API. The tool allows users to turn this feature on or off as needed.
The firm has now extended the service to spot and margin traders to prevent users from incurring unnecessary fees and unintentionally executing trades.
“Without STP, unintentional self-trading could happen in a competitive marketplace. For example, when orders from separate trading units of the same firm, using the same unique UID as unrelated trading strategies, happen to post orders that trade with each other,” Binance said.
Binance Monitors for Market Manipulation
It’s important to note that Binance strictly prohibits intentional self-trading on the platform, categorizing it as a form of market manipulation. The company’s market surveillance team is actively monitoring for such activity and other forms of market manipulation.
Binance said the team uses advanced tools to track intentional self-trading and investigate any offenders.
“Our market surveillance 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 offenders,” revealed the company.
With this implementation of the self-transaction prevention feature, Binance aims to create a more secure and efficient trading environment for its users, particularly for those engaged in automated trading. The new system will help traders avoid accidental self-trades and the associated fees, promoting fair and transparent trading practices on the platform.