Self-Trading: Nitty Gritty Details About The Latest Function On Binance

Self-Trading: Nitty Gritty Details About The Latest Function On BinanceThe article covers the newly updated feature included in opris developed binance clone script for self-trading. This feature is beneficial for crypto owners and removes manipulation in the market.

Self-Trading: Nitty Gritty Details About The Latest Function On Binance

Talk about Binance is very common these days. The Binance exchange is popular because of the features and benefits it offers to investors. It offers services related to cryptocurrency trading, listing, fundraising, de-listing, and withdrawal. Binance is a platform that cryptocurrency users who want to establish their own tokens can use to raise money through ICOs (ICOs). A significant number of investors exchange and invest in different cryptocurrencies on Binance.

In the upcoming days, the anticipation of investors to be more active in the global crypto market.  Binance, a cryptocurrency exchange, has decided to take action to stop malicious actors from controlling the market and misleading other users as trading is expected to increase. To prevent market manipulators from putting others in danger of financial loss the company has implemented a new function dubbed “Self Trade Prevention” (STP).

This article describes the fundamentals of self-trading, what we do to safeguard users, why it’s not always deliberate, how it works and introduces Binance’s self-trade prevention (STP) function as a tool to stop it.

An overview of self trading

Self-trading is a transaction if the same entity participates on both sides of the trade to avoid a change in beneficial ownership.  The Self-trading prevention (STP) function of the API Spot trading platform is to help users in self-trading. 

Self-trading happens when the same users are on both sides of a deal, indicating that the ownership of the traded asset has not changed. Such behavior is market manipulation giving the impression of trade activity.

Why is prevention of self trading important for businesses?

When a user, or a group of connected users, trades with themselves, this is known as self-trading. Since the same party is on both sides of the transaction, the benefits of the exchanged asset remain unchanged. It may skew the statistics on supply and disturb the data. It potentially changes the asset’s price information and harms trustworthiness. As a result, purposeful self-trading is forbidden per the Binance terms of service. Binance takes seriously any attempt to manipulate the markets on our platform. It is because of this reason that preventing self-trading is very necessary. Any trading exchange should benefit both sides.

Trading Your Crypto With An Crypto Exchange Platform

Self trade prevention function in binance API users

By using an STP parameter, your Binance user trading on the Spot market through API will be able to prevent unintentional self-trading with the help of the Self-Trade Prevention (STP) service. Your user can specify whether they want to make an order, take an order, or both. 

Binance’s API is the only one that can trade using the STP function for now. Later website apps, mobile apps, and desktop apps users can use them. This is because self-trading, deliberate or unintentional, is very challenging to carry out manually. Realistically, API-based quick algorithmic trading is the only type of trade where this occurs. The STP function was developed expressly for spot trading via the API in order to prevent accidental self-trading. Users who don’t use this function won’t be affected in any way.

Users engaging in authorized market activity but whose trading tactics could unintentionally result in self-trading can maximize transaction efficiency. It prevents incurring excessive trading fees by using the STP function. The STP mechanism will shield them from accidentally self-trading and maybe coming up against investigations in addition to saving them costs.  The availability of this tool can also protect the accuracy of market data by lowering the frequency of unintentional self-trades. Giving users the resources they require to trade effectively and prevent any unintentional errors is the goal of the STP function. 

Summing Up

The introduction of this feature in Binance is to prevent unnecessary trading. Anyone who chooses not to use the Self-trade prevention function won’t be negatively affected.  It will be accessible to all Binance clone script users who use the company’s API, which enables automated trading by letting users connect to the company’s services through programming languages. There won’t be any impact on users of the Binance website or app. You can connect with a cryptocurrency exchange service provider like Opris to set this best feature in your Binance APIs. They will guide you to everything as it is just launched and needs a bit more details on how it will help your business.

Get this newly updated feature in your Binance Clone