Binance Enhances Self-Trade Prevention Tools to Curb Unwanted Fees

Rolling Out the Self-Transaction Prevention Feature

On October 26, Binance is taking a firm step forward with the full implementation of its Self-Transaction Prevention (STP) functionality for all its users involved in spot and margin trading. This update was shared through a blog announcement on October 11, and it promises to save traders from those pesky, unnecessary fees that can arise from accidental self-trades.

What is the Expire Maker STP Mode?

The STP feature introduces the “expire maker” mode, which will now be the default for all trading pairs and orders on Binance’s platforms. For those who might be scratching their heads, don’t worry—this isn’t some new dance move! The expire maker mode essentially involves preventing orders that could execute a self-trade from going through, thereby keeping your trading activities smooth and fee-free.

How to Keep Track of Expired Orders

Once the STP feature is live, users can effortlessly check any orders that have expired as a result of the STP on the Binance official website and the Binance app—be it on a mobile or desktop. This way, you’ll know what went south without having to guess.

Why Self-Trade Prevention Matters

Launched initially in January 2023, the STP functionality is a lifesaver for API traders who rely on programming interfaces to automate their trades. Self-trading can occur unintentionally, especially in situations involving traders from the same firm or related accounts executing trades that collide with one another.

Preventing Accidental Transactions

“Without STP, unintentional self-trading could happen in a competitive marketplace,” Binance explained. For instance, two separate trading operations from the same organization, using a similar unique identifier (UID), might post orders that could interact with one another. With the STP feature, those accidental transactions could be halted in their tracks.

Intentional Self-Trading is a No-Go

While unintentional self-trades will be managed through STP, Binance firmly states that intentional self-trading is a big no-no. The firm categorizes intentional self-trading as a type of market manipulation, aimed at misleading market participants about trading activity levels. Binance is committed to maintaining market integrity, employing its surveillance team to detect these deceptive practices.

Keeping a Watchful Eye on the Exchange

“Our market surveillance team actively monitors market activity to identify intentional self-trading and any other forms of market manipulation,” Binance remarked in their announcement. This demonstrates their dedication to fostering a transparent trading environment.

A Note on Optional Features

While Binance rolled out the STP feature for USD-margined futures on API in August 2023, the tool remains optional. Users will need to enable the STP to activate this functionality during their trading activities, allowing them full control over their trading experience.