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Fungibility |
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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 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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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