An area which exists both above and below the fair value of a future, within which no arbitrage will take place. This is because additional costs, such as exchange fees, bid/offer spreads and commissions, will exceed arbitrage profits within this channel. Thus, the width of the channel depends on the costs incurred by the participant in the market place. Dresdner Kleinwort Wasserstein financial glossary
Financial and business terms. 2012.