Best Day Trading Instruments

Best Day Trading Instruments

There are various day trading instruments that can be used to make profits. The most important factor is to select the right instrument based on the market conditions and your trading style. 

In this article, we will introduce you to day trading basics and discuss the best day trading instruments so that you will understand which one to choose and how to use them for maximum profits.

Let’s begin now.


Day trading characteristics

Day trading is a highly specialized and profitable form of investing that involves buying and selling instruments with the aim of making quick profits. The holding duration can vary from seconds to hours but not exceed days.

Check out the best forex trading platform in India to explore the best brokers to carry out day trading. 


Some characteristics that meet day trading criteria are:


High volatility

High volatility is a great tool to have if you want your trades frequently. It can be used for pricing options, which are an important part of trading in other financial markets as well.


High liquidity

The ease of buying and selling in large amounts ensures that prices are always fair.


Information availability

Day traders keep a close eye for information on assets they trade, but not all brokers provide easy access to associated news. Day-trading platforms that include this feature are considered “good to have” when selecting instruments in which you plan on engaging with your trading strategies.


Best day trading instruments


Let’s go through the list of best day trading instruments we have outlined:

  • Forex instruments

Day traders should take care when selecting a forex pair that will be used for day trading. The high volatility and large liquidity make these instruments ideal, but you have to ensure it is the right currency pairing that meets your needs as well.

Day traders should avoid the exotic currency pairs as they don’t have enough liquidity for day trading. To learn more on safe brokers see exness review in India

  • Bond futures

Bond futures are a great way to invest in high-liquidity, low transaction cost investing. In addition, you get the diversification that day trading offers which is very important for any day trader.

  • Index futures

Indexes are highly liquid and have low transaction costs which makes them attractive for day traders who want to trade quickly with large amounts without worrying about negative impacts from volatility or slippage in their trades. The other benefit that indices provide is high leverage which can be useful for day traders as well. 

  • Stock features

Stock features are popular trading instruments as well, but stock day traders need to be careful about which stock they choose because of their high volatility. The list of these risky assets constantly changes so it is important for traders not only to know their own strategy but also to adapt according to the current market conditions if necessary.

  • Commodity features

Day traders need to be aware that futures on highly-liquid commodities like crude oil and gold make them good instruments for day trading. The diversification offered by these future contracts can help reduce risk in your investment portfolio, as well as any downside potential from a single security’s price change over time.



The article introduced you to the day trading characteristics and best day trading instruments. Each of them comes with its own set of pros and cons. It’s up to you to decide which one will work best for your trading style and goals. Experiment with each until you find the one that gives you the greatest chance for success.



George Rossi

George is the Chief Market and Broker Analyst at Prior to being recruited by, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.

George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.

Leave a Comment