Source: https://mochatrade.com/learn/glossary/price-band

# Price band (discovery bounds)
URL: https://mochatrade.com/learn/glossary/price-band
Last modified: 2026-10-17

A price band, or discovery bound, is the limit a venue puts on how far a perpetual can move from its last reference price while the real market is shut. It stops a thin weekend book from printing wild prices and makes [the Monday open a gap the band has to absorb](https://mochatrade.com/support/what-is-a-perpetual-contract-and-does-it-expire); [Module 3](https://mochatrade.com/learn).

## Related terms

- Oracle price: https://mochatrade.com/learn/glossary/oracle-price
- 24/7 trading: https://mochatrade.com/learn/glossary/24-7-trading
- Real-world asset (RWA): https://mochatrade.com/learn/glossary/real-world-asset
- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures
- Gap up and gap down: https://mochatrade.com/learn/glossary/gap-up-and-gap-down
- ETF creation and redemption: https://mochatrade.com/learn/glossary/etf-creation-and-redemption

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.