Dictionary Contents : D : Diabetes

Health and Wellness Dictionary: Definition

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Diabetes
A chronic health condition where the body is unable to produce insulin and properly break down sugar (glucose) in the blood. Symptoms include hunger, thirst, excessive urination, dehydration and weight loss. The treatment of diabetes requires daily insulin injections, proper nutrition and regular exercise. Complications can include heart disease, stroke, neuropathy, poor circulation leading to loss of limbs, hearing impairment, vision problems and death.

Interchangeability gives similar value to all the goods in a specific class and also that the good has to be made available in a specific price to the market. Without this trading commodities through an exchange would have been impossible. This would limit the assets that would be available for speculative trading. And in turn it would encourage black market activity to move the good from one country to the other. This would in fact complicate an investor’s ability to price the raw material accurately and this in turn would not make it feasible to have a commodity exchange and speculation at all.

There are many asset classes that are categorized as fungible commodities. This includes oil and gold but also many diverse assets like grains and meat. This could be argued on by a chef who knows that oranges from all parts of the world are not same. However when you talk about trading the commodities publically then these differences cannot be considered. You need a standardization to let the speculators trade in the market.

This however does not mean that every commodity is created equally. Consider corn which is a soft commodity. There is difference in the variants of corn like its quality .There is also lots of difference in the way the specific commodity is used to generate the final products. The other assets show less difference. For example gold has a very specific definition be it excavated anywhere from earth. These commodities are fungible when they are traded actively.

Commodity market uses the concept of fungability that allows standardization in prices and gives a broad access to the raw material that is produced anywhere in the world. See this for more details.

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