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These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. What Is STP? Understanding STP. STP in Securities Trading. Other Innovations. Key Takeaways Straight-through processing is an automated process done purely through electronic transfers with no manual intervention involved.
Generally, straight-through processing is most well-known in the areas of payments and securities trading, though it can be implemented in a variety of technical scenarios. Computers, mainframes, electronic exchanges, and the internet are all improving the opportunities for STP processing. The s brought about the first efforts for STP in bank payments. Article Sources. Investopedia requires writers to use primary sources to support their work.
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Related Terms Batch Processing Explained Batch processing is the processing transactions that are processed in a group or batch as opposed to individually. It applies to the computation of information or data. Wire Transfer Definition A wire transfer is an electronic transfer of funds across a network administered by hundreds of banks around the world.
Digital Money Definition Digital money or digital currency is any type of payment that exists purely in electronic form and is accounted for and transferred using computers. Associate Bank Definition An associate bank is a bank that is affiliated, usually through membership, in a regional or national organization.
Partner Links. Related Articles. Banking What Is an External Transfer? Investopedia is part of the Dotdash publishing family. To better understand the importance of STP and how STP prevents broadcast storms on a network with redundant links, consider the following example:. Both switches receive the frame and forward the frame out every port, except the port the frame was received on.
So SW2 forwards the frame to SW3. SW3 receives that frame, and forwards it to SW1. SW1 then again forwards the frame to SW2! STP allows you to select the root bridge automatically. The port ID helps you to decide the root port. It consists of a configurable 1-byte priority value and a unique port number of each bridge. Path Cost, which is also known called PC, helps to decide the best topology with regard to forwarding speed.
STP uses the concept of Path Cost. A designated port is a disabled port, and it is blocked by a network admin. A non-Designated port is a switch port that is blocked. It is also known as a blocked port, or sometimes an alternate port. It cannot forward packets to the next switch. The Spanning Tree Protocol requires a STP network device to exchange messages to help from a loop-free logic topology.
Each network device sends BPDUs, which helps to exchange topology information. It is a unique bridge ID of the root device in the network topology. It acts as a bridge ID of the transmitting bridge, an identifier of the transmitting port. One network device is selected as the root bridge. The shortest distance to the root bridge should be calculated for each network device based on the path cost.
A designated bridge for every LAN segment is selected. This is also the network device closest to the root bridge, so it should be forwarded to the root. This is the port that provides the best path from the bridge to any root bridge. STP Protocol is defined as a link management protocol designed to support redundant links that stops switching loops in the STP network.
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