Fungibility (redirected from Fungible things)

Fungibility

The interchangeability of listed options, futures contracts, and other instruments dependent upon identical terms.

Notes:

Fungibility allows buyers and sellers to close out a position through a closing transaction in an identical contract.

See also: Fungibles

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Fungibility

The substitutability of listed options, which is dependent upon their common expiration dates and strike prices. The congruence of expiration dates and strike prices lets investors close positions by offsetting transactions through the options clearing corporation.