Cryptocurrency exchange Binance is enhancing its tools to prevent unnecessary trading fees associated with inadvertent auto-trades. Today, the company announced on its blog that the platform will fully introduce the auto-trade prevention feature ( STP) for all spot and margin trading users on October 26. Following the integration, the “expire maker” STP mode will become the default mode for all pairs and trading orders on Binance spot and margin trading facilities .
Once the STP function is active, users will be able to check which orders have expired thanks to the STP function on the Binance official website, Binance App and Binance Desktop App through the transaction history page, the announcement states. Introduced at January 2023, Binance’s STP feature is designed to prevent an order from being executed if it results in auto-trading. The feature is aimed at application programming interface (API) traders, who set up specific programs to automatically execute trades with an exchange’s trading engine.
Self-dealing occurs when an API user or group of connected users trades with themselves, whether intentionally or unintentionally. STP allows API traders to avoid accidental self-trading transactions, helping users prevent unnecessary fees associated with such transactions.” Without STP, inadvertent self-trading could occur in a competitive market. For example, when orders from separate trading units of the same company, using the same unique UID, with uncorrelated trading strategies, post orders that are exchanged with each other,” claims Binance. While self-trading transactions unintentional ones are handled through the STP, intentional ones are prohibited on the exchange.
