Spot market means that a commodity is purchased on the spot with immediate settlement with the commodity being settled with the buyer receiving the goods on the spot or within a couple of days of the transaction. The spot market price can be based on the importance of the transaction to the buyer or seller. For example, if the seller has a product requested by the buyer, he can sell the product above or below the market price. However, if the seller's product has outperformed what he would like to have on hand, the seller can sell the product at a market price rather than the product becoming irrelevant to the buyer. According to the author of “Futures and spot prices – an analysis of the Scandinavian electricity market”, “physical trading occurs in the spot market”. The advantage of the spot market is the flexibility of time where the spot market is available 24 hours a day so that the seller can trade the commodities. The deal is normally settled instantly in cash and the product is delivered to the buyer and the account is usually set up...