NEST (Next Generation Electronic Securities Trading platform), has been developed by Omnesys Technologies Pvt. Ltd. Omnesys Technologies works under Thomson Reuters Corporation.
NEST comes in many versions. We have the Windows installable NEST Trader, web and then the mobile version of NEST.
The installable NEST trader is the most popular, low-cost trading software available in India. It is offered by most of the brokers free of additional cost to its clients.
Most of the brokerages especially the well-known discount brokers offer their customized trading interface based on NEST API. This includes popular discount brokers like Zerodha, Upstox, Tradesmart, etc.
Among all the versions of NEST, the executable NEST.exe is most popular. It offers flexibility of charts, indicators, diverse marketwatch, live rates that the NEST web version cannot display. The mobile version also shows live charts, live rates, indicators, etc.
However, as my trader friends would agree, analyzing charts on a mobile screen is difficult. Computers, laptops possess the processing ability to analyze the charts and the NEST Trader application is a perfect low-cost retail solution for bringing those charts live on the computer screen with a plethora of indicators, oscillators.
Let us go through some features of NEST that makes trading a cakewalk for retail traders. In this article, we walk through the features that have made NEST Trader the most common and popular trading software in India.
We will discuss the cons of NEST from a normal traders’ point of view.
Ease of creating NEST Watchlist
Managing multiple watchlists is easy in NEST. Creating multiple watchlists and including a whole range of diverse contracts in each of these watchlists is done via a single click. NEST has an “advanced search” facility, where the user has to input only three initial words of a security name to get the whole list of securities that start with those three words.
Just clicking on the appropriate contract adds it to the watchlist. One can add diverse scripts or contracts from any exchange in a single watchlist. While searching for a particular contract name in “Advance Search” facility of Nest Trader, the user does not need to specify the exchange. This is different from the Web and Mobile version of Nest, where the bourse has to be first selected.
The watchlists have some default columns alongside the script name and last traded price, which creates an instant snapshot of the stock price, volume, intraday high, low,52 weeks high and low.
Volume and last traded quantity give an instant idea on the liquidity of the stock, while intraday high, low, bid and ask quantity data help taking a position in intraday trading. All these data are refreshed live in Nest Trader and Nest mobile. However, this live refresh does not need a very high network bandwidth.
NEST Hardware requirements
Talking of low bandwidth requirements, this is one of the primary reasons for NEST being the preferred trading software. One can install NEST right from the hugely popular Windows XP to Windows 7 and right up to Windows 10.
Many exotic, expensive trading software does not run on Windows XP, as MS does not support it anymore. But the truth is that 50% of Indian computers still run on Windows XP and Windows 7. This is one of the reasons for NEST popularity among the masses.
Internet speed varies widely in India. Rural areas suffer a deficit of speeds while urban areas normally experience high speeds. NEST is a winner here. It can run at a low speed of 256 kbps and it runs even with a Pentium processor.
NEST Charts : The most exciting feature for day traders
Charts are the most exciting feature of trading. NEST offers a good charting facility. NEST has special NEST PLUS API for the charts. The chart plugins are normally offered free of cost along with NEST. Once the “Plus Charts” and “Plus Historical Charts” plugins are activated as plugin commands from the watchlist context menu, the corresponding chart opens up at the lower part of the screen.
Plus Charts are suitable for intraday or short term trades, while historical charts which can stretch back five years, is more suitable for investors.
One can apply a total of 64 indicators and oscillators on these charts. Each of these charts can have three distinct parts, the main price chart, the indicators/oscillators, and the volume. Each of these parts can be individually expanded for viewing.
The time period for viewing these waves can vary minutely literally by minutes.
NEST Order types
NEST allows all types of Buy and Sell order placement. Along with normal Buy, Sell, Basket and Cover orders, NEST facilitates the most popular Bracket Order.
In Bracket Order pop up screen, apart from normal limit order facility, there is a provision of entering square off values on the bottom part of screen. The square off values can be in absolute terms or in pips. Pip means the fractional part of the price from the third digit after decimal.
When an absolute square off-price is given in figures, then the order will execute at that profitable price. NEST gives the facility of setting this target price at an absolute difference from the last traded price or the average traded price.
Bracket order also includes a stop-loss price. It is really a question of which is executed first- the Target or the Stop-Loss price. Interestingly, NEST allows a Dynamic Trailing Stop Loss order placing facility known as Trailing Stop_loss. This moves up or down along with the last traded price. This ensures that the chances of profit are much more.
For example, if the trailing stop-loss price is rupees two hundred given when the last traded price was rupees two hundred twenty, it means there is an absolute difference of rupees twenty between LTP and trailing stop loss. Now if the LTP (last traded price) moves up to rupees two hundred twenty-five, the trailing stop-loss will also move up by rupees five to rupees two- hundred and five only. This will minimize the loss as the trading price moves up.
Other types of orders like Basket Order that enable giving multiple script orders via a single order entry or the popular Cover order are also available at a click on NEST.
Pay-In and Pay-Out are vital for trades both in the Cash and the Future segments. One may need a sudden infusion of funds for buying a share which may have crashed temporarily in the cash segment. In futures, sudden cash pay-in may be needed to maintain margins or simply buy or sell.
Other features that make NEST good trading software
NEST provides a secured encrypted environment for these transactions. It allows linking with almost all major banks for direct pay-in or pay-out.
Traders need a frequent review of margins blocked and free cash left, especially in situations where markets may have crashed or futures are gyrating wildly. NEST Trader has thoughtfully provided the linking of back-office via RMS Limits tab in Surveillance in the Main Menu.
This link picks out the current trading account free cash, margin held and margin free data in client’s domain.
Order Book, Trade Book, latest Net Positions are available in View Order/Trade reports in the main menu.
In short, most of the back office features along with intraday trading account live changes owing to various transactions are integrated into the NEST.
Thus, NEST not only facilitates trading for every type of traders, but it also connects him with all facets of his trading account details live.
In the Tools section, NEST offers an automated facility of creating alerts. This alert is created for any of the scrips in any exchange. This alert can be created for any index of NSE like Bank Nifty, BSE 200, BSE 100, MCX Metal, CX NONMETAl or any type of security in any recognized Indian bourse.
The alert is created when a specific user-created pre-condition occurs in the market. This alert when triggered is sent either to registered e-mail or the registered mobile number as SMS. In the trading world, this alert may be life-saving in case of sudden vicious price movement.
NEST also provides the most active intraday stocks by volume and by price. This helps the intraday traders select the most active stocks for such trade.
It also shows “Price Ladder” for a particular script where it displays the corresponding ten best bid and ask prices along with the most concentrated volumes at these prices. This helps the client in choosing the target price for intraday trades.
NEST Trader is not flawless. Charts have to be manually resized and own conclusions have to be drawn. The fact that watchlist, charts all appear on the same page makes you pore over the desktop for better viewing.
Trendlines once drawn, have to be manually removed one by one. We can say that the NEST charts are not very smooth.
In spite of a few cons here and there, NEST provides the most wholesome trading software at the lowest cost. If one goes through all the features of NEST, he will find all that he needs as a normal trader, are present in its interface.
It is for this reason that most of the discount brokerages who cannot afford to develop a full trading environment from scratch depend on NEST APIs to develop their trading terminal.
We wholeheartedly recommend NEST Trader for normal trading and congratulate Omnesys for developing such an all-encompassing interface for Indian traders at economical costs.