Crossword Genius

Sharp location where things are finely balanced (5,4)

Ross

I believe the answer is:

knife edge

I'm a little stuck... Click here to teach me more about this clue!

'sharp' is the definition.
The definition and answer can be both man-made objects as well as being singular nouns.
Perhaps there's an association between them I don't understand?

'location where things are finely balanced' is the wordplay.
I cannot quite see how this works, but
'location' could be 'edge' (edge is a kind of location) and 'edge' is present in the answer.
The remaining letters 'knife' is a valid word which might be clued in a way I don't see.
This may be the basis of the clue (or it may be nonsense).

Can you help me to learn more?

(Other definitions for knife edge that I've seen before include "perilous place on which to be" , "in precarious position" , "Tense situation" , "dangerous situation" , "critical situation" .)

I've seen this clue in The Irish Times.
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