The spot market means that a commodity is purchased on the spot with immediate payment, the commodity being settled, the buyer receiving the commodity on the spot or within a few days of the transaction. The spot market price may be based on the importance of the transaction to the buyer or seller. For example, if the seller has a product that the buyer demands, he can sell the product above or below the market price. However, if the seller's product exceeds what he or she would like to have on hand, the seller can sell the product at market price rather than making it irrelevant to the buyer. According to the author of “Futures and spot prices – an analysis of the Scandinavian electricity market”, “physical trading takes place on the spot market”. The advantage of spot market is the flexibility of time during which the spot market is available 24 hours a day so that the seller can trade the products. The deal is normally settled instantly in cash and the product is delivered to the buyer and the account is usually opened....