Cryptocurrency exchange Binance is scaling its tools aiming to prevent unnecessary trading fees associated with unintentional self-trades.
Binance will fully roll out the self-transaction prevention (STP) will be automatically applied to all users doing spot and margin trading starting from October 26th.
This STP function was introduced in January 2023 and is meant to stop orders from going through if they would result in a person trading with themselves. This is important because some traders use automated programs to make trades on Binance, and these programs can sometimes accidentally make trades with the same user.
After this change, a mode called “expire maker” STP will be the default for all trading pairs and orders. Users can check which orders have expired due to STP on the Binance website or apps.
Binance is particularly targeting API traders, who use programs to trade automatically. The goal is to prevent accidental self-trading and the associated fees. Without this feature, trades between different parts of the same organization could unintentionally happen, leading to potential problems in a competitive market.
It’s worth noting that Binance had already introduced the STP feature for USD-margined futures on API in August 2023, and users can choose to enable or disable this function based on their preferences.