On-demand – Fixed rate by the hour or by the second with no commitment.
Reserved Instance - You reserve an EC2 instance for your use and this gives you a discount.
Spot – Enables you to bid whatever price you want to pay for an instance capacity. This is used if your application has a flexible start and stop times. For example, Big Data computation as it is not time-sensitive.
Dedicated Hosts - Can be purchased on-demand, used for regulatory requirements that may not support multi-tenant virtualization.