Binance Launches New Self-Trade Prevention (STP) Feature for API Spot Trading Users

Binance Blog · 2023-02-03T03:35:11.000Z

KEY POINTS Self-dealing is the phenomenon of a user or a group of related users entering into a transaction with themselves. Deliberate self-concluded transactions to create the illusion of trading activity are market manipulations. Please note that Binance’s Terms of Use explicitly prohibit intentional self-executing of trades. But not all self-deals are planned or intentional. Some users running different strategies at the same time may sometimes accidentally match two of their orders. Starting January 26, 2023, Binance API users can use the new Spot Trading Self-Filing Prevention (STP) feature, which prevents order execution if the order is to be self-filled. The STP function can set Maker or Taker orders to be invalid, or both at the same time, the details are specified by the user. After using the STP function, users can avoid any form of unintentional self-transactions. It can also ensure that the running trading strategy will not cause self-dealing to save unnecessary transaction fees. Binance’s Self-Trade Prevention (STP) is a new spot trading feature that allows API users to set up a safety net to prevent their orders from being matched. Binance has launched a new self-transaction prevention (STP) feature to prevent API spot trading users from performing self-transactions. Without this feature, unintentional self-deals may occur in a highly competitive market. For example, the same company, using the same unique UID, publishes orders for different trading units in unrelated trading strategies that happen to trade against each other. Coordinating trading strategies in a fast and competitive market can be difficult for traders, so some traditional exchanges and cryptocurrency trading platforms provide self-deal prevention features for traders. This article explains the basics of self-trades, what we do to protect our users, how and why unintentional self-trades occur, and Binance’s Self-Trade Prevention (STP) feature that prevents self-trades from forming. What is a self-transaction? Self-dealing refers to the phenomenon of a user or a group of related users entering into a transaction with themselves. Both parties to the transaction are the same trader, so there is no actual change in the beneficiary of the asset transaction. This can disrupt the natural process of price discovery and lead to distortion of supply and demand data. It may also lead to distortion of the asset’s price data, thereby reducing its credibility. Therefore, according to Binance’s terms of use, intentional self-dealing is expressly prohibited.Binance will closely monitor any form of market manipulation on the platform. Protecting Users Our market surveillance team closely monitors market behavior to identify intentional self-dealing and any other form of market manipulation. Binance has a full range of tools to investigate violators and track intentional self-transactions. But it's also important to realize that not all self-deals are intentional. For example, a large active trader (including liquidity providers) running multiple different strategies simultaneously may inadvertently match two of their own orders. The same situation occurs when the same organization operates different trading units using the same unique UID. Our top priority is to protect all Binance users and provide traders with powerful trading tools. Therefore, the STP function launched by Binance can help traders with self-transaction risks avoid risks. Binance launches self-transaction prevention function for API users Introduction to self-transaction prevention (STP) function - Release date: January 26, 2023 - Binance users who trade in the spot market through API can set STP parameters for orders to prevent any unintentional transactions The phenomenon of self-dealing. After enabling this parameter, users can choose to set Maker (pending) orders, Taker (taking) orders to expire, or set both to expire to avoid self-executing transactions. Please note that the STP feature is only available to API users and is not available to users who trade on the Binance website, mobile app, or desktop app. The reason for this is that it is extremely difficult to do it manually, whether it is a deliberate or accidental self-deal. In fact, self-dealing only occurs in fast algorithmic trading done by APIs. Only unexpected self-transactions in large-scale API transactions conducted by VIP users may have a significant impact on market data. Therefore, the STP function launched is specifically targeted at spot transactions conducted through APIs. Users who do not use this feature will not be affected. The Importance and Benefits of the STP Function Some users’ strategies may lead to unintentional self-transactions during actual market activities. After these users use the STP function, they can not only maximize their trading efficiency but also save unnecessary costs. transaction fee. In addition to saving money, the STP feature helps them prevent self-transactions and being labeled as suspicious in investigations.Additionally, the introduction of this tool maintains the integrity of market data by reducing the number of unintentional self-trades. After using the STP function, users can use this tool to conduct efficient transactions and avoid any form of unintentional self-transactions. Conclusion We strongly recommend API users to use the STP function to prevent unintentional self-transactions, which may have negative impacts. Users considering certain compliance requirements or risk management responsibilities will also find the STP functionality useful. To learn more about STP functionality, please refer to the Binance API documentation. Extended reading "How to use Binance's self-trade prevention function" "What is the spot market?" "Detailed explanation of market placers and market takers" "What is market manipulation?" 》

Key PointsSelf-trading is when a user or group of related users trades with themselves. Intentional self-trading to create the appearance of trading activity is market manipulation. Please note that Binance's Terms of Use specifically prohibit intentional self-trading.
But not all self-trading is planned or intentional. Some users run different strategies at the same time and may accidentally match two of their own orders.
Starting January 26, 2023, Binance API users will have access to a new spot trading self-trading prevention (STP) feature that prevents orders from executing if they would self-trade. The STP feature can invalidate either Maker or Taker orders, or both, as specified by the user.
After using the STP function, users can avoid any form of unintentional self-trading. It can also ensure that the running trading strategy will not lead to self-trading, thus saving unnecessary transaction fees.
Binance’s Self-Trade Prevention (STP) is a new spot trading feature that allows API users to set up a safety net to prevent their own orders from being matched.
Binance has launched a new Self-Trade Prevention (STP) feature to prevent API spot trading users from self-trading. Without this feature, unintentional self-trading may occur in competitive markets. For example, the same company using the same unique UID, placing orders of different trading units in unrelated trading strategies, just happened to trade against each other. Coordinating trading strategies in fast and competitive markets is difficult for traders, so some traditional exchanges and cryptocurrency trading platforms provide traders with self-trade prevention features.
This article explains the basics of self-trading, what we do to protect our users, how and why unintentional self-trading occurs, and the Binance Self-Trading Prevention (STP) feature that prevents self-trading from occurring.
What is self-trading?Self-trading is the phenomenon where a user or a group of related users trades with themselves. Both parties to the transaction are the same trader, so there is no actual change in the beneficiary of the asset transaction. This may disrupt the natural process of price discovery and cause distortions in supply and demand data. It may also cause distortions in the price data of an asset, reducing its credibility. Therefore, according to Binance's Terms of Use, intentional self-trading is expressly prohibited. Binance will closely monitor any form of market manipulation on the platform.
Protecting UsersOur market surveillance team closely monitors market behavior to identify intentional self-trading and any other forms of market manipulation. Binance has a full range of tools to investigate offenders and track intentional self-trading.
But it is also important to realize that not all self-trading is intentional. For example, a large active trader (including liquidity providers) running multiple different strategies simultaneously may inadvertently match two of their own orders. The same can happen when the same organization operates different trading units using the same unique UID.
Our top priority is to protect all Binance users and provide traders with powerful trading tools. Therefore, Binance launched the STP function to help traders who are at risk of self-trading avoid risks.
Binance launches self-trading prevention feature for API usersSelf-Trade Prevention (STP) Feature Introduction — Release Date: January 26, 2023 — Binance users trading in the spot market through the API can set STP parameters for their orders to prevent any unintentional self-trading. After enabling this parameter, users can choose to invalidate Maker orders, Taker orders, or both orders to avoid self-trading.
Please note that the STP feature is only available to API users, not to users trading on the Binance website, mobile app, or desktop app. The reason for this is that self-trading, whether intentional or unintentional, is extremely difficult to do manually. In practice, self-trading only occurs in fast algorithmic trading done by the API.
Only unexpected self-transactions in large-scale API transactions conducted by VIP users may have a significant impact on market data. Therefore, the STP function launched is specifically targeted at spot transactions conducted through APIs. Users who do not use this feature will not be affected.
Importance and benefits of STP functionSome users may have strategies that may lead to unintentional self-trading in the actual market activities. By using the STP function, these users can not only maximize their trading efficiency but also save unnecessary trading fees. In addition to saving fees, the STP function can also help them prevent self-trading and prevent them from being listed as suspicious behavior in investigations. In addition, the introduction of this tool can maintain the integrity of market data by reducing the number of unintentional self-trading. After using the STP function, users can use the tool to trade efficiently and avoid any form of unintentional self-trading.
ConclusionWe strongly recommend that API users utilize the STP feature to prevent unintentional self-trading, which could have a negative impact. Users who consider certain compliance requirements or risk management responsibilities may also find the STP feature very useful.
For more information about STP functionality, please refer to the Binance API documentation.
Further readingHow to use Binance’s self-trading prevention feature
What is the spot market?
"Detailed explanation of market order makers and market order takers"
What is market manipulation?

.css-1iqe90x{box-sizing:border-box;margin:0;min-width:0;color:#EAECEF;}Key Points

What is self-trading?

Protecting Users

Binance launches self-trading prevention feature for API users

Importance and benefits of STP function

Conclusion

Further reading

Key Points