What is Fungible Trading
Understand alternative investment and how it works Many investors are always looking for new ways to make money, and alternative tools can do so through arbitrage.
In other words, alternative securities allow investors and speculators to buy low prices and sell high prices to make a profit.
Variable transaction definition
If a financial instrument (such as a stock, bond or futures contract) can be traded on one market or exchange and then sold/purchased in another market or exchange, the instrument is considered interchangeable.
The real meaning of the word fungus is the ability to replace a financial instrument unit with another unit of the same financial instrument, as you can do with paper money, and convert your dollar into someone else’s. In trading, substitution means the ability to buy and sell the same financial instruments in two or more different markets.
For example, if you can buy 100 shares in the United States Nasdaq, then 100 shares of the same shares can be sold on the London Stock Exchange, the result is zero shares (100 shares) bought 100 sold, shares can be replaced. There are many interchangeable financial instruments, the most popular are listed on multiple exchanges of stocks, commodities (such as gold and silver) and currency. Most physical assets are considered replaceable because you can buy and sell them in different places. You can buy gold or silver at one dealership and sell it to another dealer.