Price Threshold

Definition ∞ A price threshold is a predetermined level at which a specific action is triggered in financial markets. This could relate to automated trading orders, margin calls, or the activation of certain smart contract functionalities. Reaching a price threshold signifies a critical point that may lead to significant market adjustments or protocol events.
Context ∞ Price thresholds are frequently discussed in relation to market volatility and automated trading strategies within the cryptocurrency sector. News often highlights when key price levels are approached or breached, potentially signaling the activation of large sell orders or liquidation events. The establishment and monitoring of these thresholds are critical for risk management and for understanding the mechanics behind significant price swings.