Generally speaking betting and gambling is something that is connected to the world of sport, though bets are available on just about anything. Few would have thought, however, that a whole industry functions on betting on things like the FTSE 100, or the price of oil.

Both the FTSE and the oil price have fluctuated massively in recent months, and in recent weeks the turmoil has been astonishing. Rescue plans for the US economy have led to a kick up ? and then subsequent drop ? of share value on our own stock exchange, and no one can say for certain where it is going to end. The oil price, however, despite recent drops, looks set to maintain a steady rise into the foreseeable future.

A good rule is that while you start doesn't use more than two or three times leverage on your account. Second you must develop a CFD plan which suits your personal needs and profile. If you develop a solid plan it would be crucial in your long term success in CFD betting. Initially identify those areas where you excel and try to stick to them for some time. Try to maximize your opportunities with your plan. If you try to tackle new markets more money gets wasted. Third and most important use ?stops? religiously. It helps you to protect in worst scenario by limiting all types of downside.

Spread bets are very easy to make, all it takes it an account with one of the specialist companies and a very quick phone call. It offer greater flexibility than the conventional type of betting, but also means that the gambler can lose many multiples of its own stakes.

Due to the possibility of suffering large losses it is important that you know your field before you make bets on it. Betting on the oil price, for example, requires knowledge of historical oil price trends, and current market conditions, because whilst oil might generally be on the rise, there has recently been a significant price drop. Short term fluctuations can make unseasoned investors doubt their original judgment, and possibly jump ship before the market turns in their favour.

For the plunge in the stock market lately, if an investor had placed a spread bet on the FTSE dropping at this time last year they would potentially be looking at an enormous profit, and in the shorter term, a bet on HBOS shares just last week could have resulted in a massive boost. Spread betting is not for the faint hearted, nor is it for those who are not familiar with the markets upon which they are betting, but if you know what you are doing, there is a significant amount of money to be potentially is made.