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In an effort to enhance user experience and secure trading operations, Binance has revealed that it will make the Self-Trade Prevention (STP) function obligatory for all users engaged in Spot and Margin trading. The new policy will be enforced starting October 26, 2023, at 08:00 (UTC).
This strategic move by Binance comes on the heels of favorable feedback and explicit requests from the trading community. The primary goal of implementing the STP function is to safeguard users from unintentionally executing trades with themselves, which would otherwise lead to needless trading fees.
The STP function serves as a safeguard by automatically blocking any orders that could lead to a self-trade. This ensures that users don’t inadvertently trade against their own orders, saving them from unwanted fees and potential market manipulation.
For those trading on Binance Spot and Margin platforms, the “EXPIRE_MAKER” mode will be set as the default STP mode for all orders. This particular mode is designed to curb self-trading activities by instantaneously expiring any unfilled quantities in the maker orders. Subsequently, the taker orders will proceed for execution as per the norm.
API users are not left out in this update; they have the flexibility to opt for alternative STP modes. This can be done by sending the “selfTradePreventionMode” parameter along with their order via the API. To find out the STP modes available for each trading symbol, API users can send a request for the “allowedSelfTradePreventionModes” parameter using the GET/api/v3/exchangeInfo command. Further details on the other two STP modes are available in the STP Function FAQ section on Binance’s website.
This mandatory implementation of the STP function is a testament to Binance’s ongoing commitment to providing a secure and user-friendly trading environment. By eliminating the risk of accidental self-trades, Binance aims to streamline the trading process and make it more efficient for all its users.