A commodities or securities market in which goods are sold for cash and delivered immediately is referred to as the spot market or cash market. Contracts that are bought and sold on these markets are immediately effective. Wherever the infrastructure exists to conduct the transaction spot markets can operate. For most securities the spot market exists primarily on the Internet.

Examples of Spot Market

Spot Forex

There is a 2 day delivery date for the spot foreign exchange market, this 2 day delivery date is originally due to the time it would take to move cash from one bank to another.

Energy Forex

De to the spot energy market the producers of surplus energy are allowed to instantly locate available buyers for this particular energy, they negotiate prices within milliseconds and then they deliver actual energy to the customer within a few minutes after that.

Control of Energy Spot Market

Either the spot markets can be privately operated or they are controlled by industry organizations or government agencies. The speculators are frequently attracted by them, since public know the spot market prices almost as soon as deals are transacted.

Examples of Energy Spot Markets

For natural gas in Europe the examples of energy spot markets are

• the Title Transfer Facility (TTF) in the Netherlands and
• the National Balancing Point (NBP) in the United Kingdom.

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