In addition to its general meeting fungibility is also applied to a futures contract with identical administration in more than one financial centre. Trades in various geographical locations can be off-set (eg, bought on the IPE and sold on SGX-DT). See Fungible.
Future Futures Futures Commission Merchant (FCM)
The inherent characteristic of existing in many separate units, each of which is indistinguishable from, and can be used in place of, any other unit. Municipal securities are considered generally to lack fungibility because, given the large number of issues and the relatively small principal amount outstanding on most issues, a person seeking to replace securities of a specific issue ( e.g., in order to make delivery on a transaction) often finds it difficult to locate identical securities elsewhere in the market. The features of securities that must be identical in order for them to be considered fungible for delivery purposes are specified in MSRB Rules G-12(e) and G-15(c).
a product is fungible if it can be exchanged. Futures contracts for the same commodity and delivery month are said to be fungible due to their standardised specifications.
Interchangeability of contracts.
The characteristic of interchangeability. Futures contracts for the same commodity and delivery month are fungible due to their standardized specifications for quality, quantity, delivery date and delivery locations.
Ability to substitute one type or class of securities or assets with another type or class. This is particularly relevant to the trade of options and futures where the fungibility of options that share the same strike price and expiration dates allows investors to offset their positions.
Fungibility is a measure of how easily one good may be exchanged or substituted for another example of the same good at equal value.