A financial instrument (i.e. single stock futures contract, contract options, etc.) is considered fungible if it can be bought (or sold) on a market or Exchange and then sold (or bought) on another regulated market or Exchange.
The actual meaning of the word perishable is the ability to replace a unit of a financial instrument to another unit of the same financial instrument. However, in business, fungibility means usually to buy or sell the financial instrument itself on a different market with the same end result.
For example, if an individual 100 shares can be purchased on the Nasdaq in the United States, and the same one hundred the same individual shares can be sold on the London Stock Exchange in the United Kingdom, with the result is zero, the actions of individual stocks would be considered fungible.
There are many fungible financial instruments, with the most popular different stocks, some raw materials (e.g. gold, silver, etc.) and currencies.
Fungible financial instruments are often used in arbitrage trades, because the price difference (the refereeing) often comes from a difference in position (fungible part). For example, if the Euro/US dollar exchange rate has been in the United States and 1.2500 1.2505 into United Kingdom, an arbitrage dealer would buy euros in the United States and then immediately sell euro in the United Kingdom, making a profit of 0.0005 per Euro (or $ 5 per $ 10,000), because the euro is fungible financial instrument.
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