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.
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.
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.
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I’m Meagan Diaz, a news writer and author at World Stock Market. My main focus is on technology and stock market trends, and I’m passionate about helping readers stay informed on the ever-changing landscape. I bring extensive knowledge of the industry to my work as well as a knack for storytelling that makes my articles both accessible and engaging.