What are fungible assets?

So, one definition of fungibility would be units that are effectively identical in terms of their attributes such that one can be exchanged for the other with no loss of value. Most of the types of assets traded in online brokerage accounts are fungible. Stocks, bonds, and options contracts are considered fungible assets.

What is fungibility in finance?

Fungibility, in finance, refers to any goods, assets, and commodities capable of being substituted with anything identical in type, nature, form, value, or function. Items that exhibit such property are gold and silver, sweet crude oil, bonds, shares, futures contracts, fiat money, digital currencies, etc.

What is a non fungible asset?

Non-fungible assets, on the other hand, are unique in some way, which means one cannot be replaced with the other. Houses, gemstones, and artwork are all non-fungible goods. Fungibility is the interchangeability of a good or asset with other specific goods/assets of the same type.