Self-Trade Prevention by Canceling the Resting Maker Order

Summary

This brief documentation note explains a self-trade prevention rule: when orders from the same address would trade with each other, the resting order is canceled instead of being filled. The cancellation incurs no fee and does not appear in the trade feed.

The note relates this behavior to the “expire maker” convention used on centralized exchanges. It describes why a market-making algorithm may prefer this outcome: the incoming order can keep seeking fills against liquidity behind the resting order, provided those fills remain within its limit price. The document states the mechanism and its rationale, but offers no configuration details, empirical comparisons, or broader discussion of venue-specific implementations.

Key ideas

• Orders from the same address do not fill against each other under this rule.
• The resting order is canceled without a fee or a trade-feed entry.
• The behavior resembles the centralized-exchange convention called expire maker.
• Market makers may prefer it because the incoming order can continue seeking eligible liquidity behind the canceled order.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.