Fungibles

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Fungibles

Assets in which one unit is completely interchangeable with another. For example, there is no difference between one ounce of gold of a given quality and one ounce of gold of exactly the same quality. Money is another example of a fungible asset: $10 in cash is $10 in cash whether the bills are crisp and new or old and tattered. Some investment vehicles are fungible, while others are not. Standardized contracts such as options and futures are largely fungible, while forward contracts are not. Fungible assets are more liquid than non-fungible assets.

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Fungibles