Binance has introduced a new API spot trader feature.

Cryptocurrency exchange company Binance has unveiled a new feature that will prevent self-trading activities on the platform.

STP to protect against inadvertent self-trading

In a ___ Blog post On January 25, Binance introduced a Self-Trade Prevention (STP) function for users who trade on the spot market using the platform’s API for spot trading.

The new function, which will be available on January 26, aims to prevent the execution of orders that could result in self-trading.

Self-trading occurs when the same users are on both sides of the trade, indicating that ownership of the traded asset has not changed. Such activity creates the appearance of commercial activity and is a form of market manipulation.

However, Binance noted that there was some unintentional self-trading activity.

According to the blog post, professional traders who execute multiple strategies simultaneously may accidentally match two orders from the same trading desk. While the platform acknowledges such errors, the exchange giant emphasized that the company’s terms of use deliberately prohibit self-trading.

Introduction of STP helps users save fees on unnecessary trades and prevent inadvertent self-trading transactions. The new function is targeted at API users and is not available to users who trade on the Binance website, desktop, or mobile apps.

Meanwhile, the launch of Binance’s new tool comes as the crypto exchange is battling FUD from rivals.

According to a recent report by crypto.newsthe company’s CEO Changpeng Zhao claimed Insolvent rival FTX Paid a cryptocurrency news site over $43 million to publish negative news about Binance.

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