Essay --

Currently in international securities industry and house servant tradeplace, there are two types of the purchasing orders purchaser uses. One mode for the purchasing the products from the market is spot market buying and the second method of buying the products is with approaching contract. The on the spot method is overly called cash market or physical market, where the products, currencies or commodities care for cash and delivers the products at a time or within short period of time. For example, oil, grains, silver, beef, sugar, indispensable gas, milk, and gold are done through the spot market, where the prices are the come in by open market and the transfer of cash and goods takes place immediately, and deliver as requested date in the future or within short period of time. The spot market is an instantaneous change over for the current list or spot price for a crabby commodity. With the integration of internet technology, the spot market has become even to a grea ter extent efficient and useful especially in the energy industry. If energy companies suck up large surpluses of energy, the internet can give them a chance to date buyers in current need al close to immediately. Though the spot market is good for company I need right now, its drawback is the move prices that can cause chaos when calculating the logistics over the long term. in that respect are several pros and cons of on spot buying, such as it conducts the market research and supplier identification quickly in new market. Also, it provides unaccented access for lower value purchases. Moreover, it improves the sourcing productivity as well as alleviates the capacity issues that enhance the productivity of plant and category buyers. Also, it provides easy curriculum ability for market tests across geographiesThough apro... ...vent of the futures contract negotiated by Calpine, it did non fulfill the need for sodium hypochlorite, which implementing the spot market as a way to assure the efficiency of operations that would be the decision most logically made. If Calpines buyers or sellers know that they will be buying certain chemical in future, and selling certain number of products or energy, then they should consider taking a long term future contract for purchasing, and short tern future contract for selling the products which hedge its positions in market. So, operations ramp up, more energy needs to be supplied for the change magnitude demand that was not accounted for in the purchase of the particular chemical Calpine ordered. put up of the chemical dwindles and it up to the men and women at Calpine to search the spot market to find a company with a surplus looking to sell on the spot.