Binance will introduce a tool to avoid market manipulation

- Advertisement -

Binance will launch a Self-Trade Prevention (STP) tool to eliminate the possibility of matching and executing orders from the same trader (self-trading), which can be considered a form of market manipulation. The new feature will be available from January 26, according to message on the website of the exchange, writes RBC Crypto.

Self-trading or “trading with oneself” occurs when the orders of a user or a group of related users match their own orders. The same participant is on both sides of the transaction, so there is no actual change in the owner of the traded asset.

- Advertisement -

When self-trading is done intentionally to create the illusion of trading activity, it can be seen as a form of market manipulation, the report said. This can disrupt the natural price-setting process and distort the asset’s price, supply and demand data.

Intentional self-trading is prohibited according to the Binance terms of use. However, not all such transactions are intentional. Some users who use several different strategies at the same time may accidentally get two of their own orders matching. The new STP tool will allow API users (an interface that allows you to connect to Binance servers and use the received data in external applications) to set up protection that will prevent any of their orders from matching each other.

- Advertisement -

Starting January 26, Binance API users can take advantage of the new STP feature to prevent this type of trade in spot trading. STP will block the execution of the maker or taker order, or both, depending on what the user specifies in the function settings.

Stay in touch! Subscribe to World Stock Market at Telegram.

Source: Cryptocurrency

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles