3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Spot Market

A Spot Market is a commodities or securities market in which goods are sold for cash and delivered immediately. Sellers and buyers of oil, gas, and electricity generally structure their business using (mainly) long term contracts, then use the spot market to make day-by-day or hour-by-hour adjustments. In this way, spot markets help balance supply and demand, even though spot market prices can be volatile.