Binance Introduces Function for API Users to Prevent Self Trading
Cryptocurrency exchange Binance has introduced a new function to help its API users prevent self-trading on their platform.
The service will be available to Binance's API users from Jan. 26. Users of the exchange's website and app will not be affected.
Binance added that the feature is optional and there would be no impact to users who choose not to use it.
The Self-Trade Prevention (STP) function will block the execution of orders that would result in a self-trade, an activity in which users trade with each other in order to create the illusion of there being more activity than there actually is. Self trading is therefore considered a form of market manipulation.
Binance API is the exchange's service allowing other trading firm's to connect to Binance's servers, getting access to market data and enabling trades.