Interchangeable. The term is often used to apply to financial instruments which are identical in specifications. For example, options and futures contracts are highly fungible, since they are highly standardized arrangements. On the other hand, forwards and swaps are not, since they are customized arrangements. Instruments that are highly fungible tend to be very liquid, and so transaction costs tend to be low.

Use fungible in a sentence

You should try and bring on people that are fungible so that they can all handle any job you may need.

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The lineup was fungible and able to be changed because they were not that good and did not have great chemistry together.

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My boss told me that I would have a difficult time selling our brand of olive oil because he believed that olive oil was a fungible product and there was no real difference from one brand to the next.

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funds from operations per share (FFOPS) structured finance