Cryptocurrency exchange giant Binance has unveiled a new feature that would prevent self-trading activities on the platform.
STP to protect against inadvertent self-trade
In a blog post on Jan. 25, Binance introduced the Self-Trade Prevention (STP) function for users who trade on the spot market using the platform’s API for spot trading.
The new function, which will be available on Jan. 26, aims to prevent the execution of orders which could result in self-trade.
Self-trading occurs when the same users are on both sides of a trade, which indicates that there is no change in the ownership of the traded asset. Such activity creates the impression of trading activity and is a form of market manipulation.
However, Binance noted that there were some unintentional self-trading activities.
According to the blog post, professional traders who carry out multiple strategies simultaneously could accidentally match two orders from the same trading desk. While the platform acknowledges such errors, the exchange giant stressed that the company’s terms of use prohibit intentional self-trades.
The STP introduction helps users save fees on unnecessary trades and curb inadvertent self-trading transactions. The new function targets API users and is unavailable for customers who trade on the Binance website, desktop, or mobile apps.
Meanwhile, the launch of Binance’s new tool comes as the crypto exchange is fighting off FUD from competitors.
According to a recent report by crypto.news, the company’s CEO Changpeng Zhao claimed that bankrupt rival FTX paid over $43 million to a cryptocurrency news site to publish negative news about Binance.
Source: https://crypto.news/binance-introduces-new-api-spot-trader-feature/