Definition of "fungibility"
  1. A feature indicating that items are interchangeable, often seen in futures contracts for identical commodities and delivery months on the same exchange due to standardization of quality, quantity, delivery date, and locations
How to use "fungibility" in a sentence
  1. The concept of fungibility is key in commodity trading, where standardization is crucial.
  2. Because of fungibility, any two units of the same type of commodity can be substituted for each other.
  3. In finance, currencies show a high degree of fungibility because one unit of a particular currency is equivalent to any other unit of the same currency.

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