According to the company blog, cryptocurrency exchange Binance announced the launch of a new feature to help API users prevent auto-trading on the platform.
STP Function Details
This self-trading prevention (STP) feature is to help Spot API trading users avoid self-trading. Binance API users will be able to enjoy a new STP feature from January 26, 2023. It should be noted that the STP feature is not intended for those who trade on Binance’s website, mobile app or desktop app. Additionally, users who do not use this feature will not be affected.
How it works?
Self-trading occurs when a related user or group of users trades with itself. There is no real change in the beneficial ownership of the assets traded because the same participants are on both sides of the transaction. The Binance STP feature will block order execution if it leads to auto-trading. The STP function will expire maker or taker orders as specified by the user. The blog post detailed that without STP, unintended self-trade could occur in a competitive market.
Binance Suspends DCG Crypto Trading
As previously reported by Corner Gape, Binance would block DCG’s Time-Weighted Average Price (TWAP) algorithm trading strategy and potential trades. The reasons could be legal risks, an investigation by the US DOJ and the closure of the API after Genesis filed for bankruptcy.
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