Binance makes Self-Trade Prevention feature mandatory
Binance makes Self-Trade Prevention feature mandatory
Cryptocurrency exchange Binance is introducing mandatory Self-Trade Prevention for all Spot and Margin users on October 26 at 8:00 UTC in an effort to better protect its users, ensure compliance, and minimize unwanted fees.
The Self-Trade Prevention (STP) feature, as the name suggests, is a built-in mechanism designed to prevent users from self-trading, which often occurs unintentionally and can result in unnecessary transaction costs for the user.
It is worth noting that the feature was previously enabled only after user consent.
"The function enables Binance users trading on our Spot and Margin Markets to set an STP parameter for their orders, which consequently prevents any inadvertent self-trading," the exchange said on its website.
With the said parameter, the user can choose which of the orders (maker, taker, or both) will be executed if self-trading occurs. By default, the maker's order expires.
The exchange emphasized that the optional execution of the Self-Trade Prevention feature is beneficial because it provides users with some flexibility by giving them a choice when executing trades under this safeguard.
"Traders who used the function also gave us positive feedback and confirmed the demand for it," Binance said in a statement.
In addition, Binance points out that the Self-Trade Prevention feature significantly reduces the potential for market manipulation.
The introduction of a mandatory Self-Trade Prevention mechanism underscores Binance's commitment to creating a fair and user-friendly trading environment and also demonstrates its goal to ensure the most efficient trading practices, reduce risk, and increase confidence in the platform's operation.
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