It is quite well known that most trader use Microsoft Excel for variety of ad hoc calculation and management of current state of events. It is simple to use and provides phenomenal amount of computing capability.
How it works
- A trader can build a very simple market watch for any instrument of his interest on a Excel work sheet.
- He can then use the Excel capabilities to extend and expand the display with additional columns and rows.
- A default NEST XL view will populate the data for all instruments and then keep updating them on a real time basis.
- Since the data is real time, all cells are also updated.
- The trader now has complete and real picture of the market place.
OMNESYS NEST XL in addition to real time feed graphically shows the various critical parameters like Option Greeks, implied volatilities on a tick by tick basis on a Microsoft Excel sheet, so that you have all the critical information at your finger tips.
Among other innovative features, OMNESYS NEST XL also has a simulation screen, which helps the trader visualize the risk and think ahead.
OMNESYS NEST XL - Sensitivity Graph
Another powerful feature of OMNESYS NEST XL is the Sensitivity Graph, It graphically shows the variation in profit/loss for the portfolio with respect to asset price change, volatility change, time to expiry.
OMNESYS NEST XL - Delta-Skew
OMNESYS NEST XL also has an array of charting facilities, which makes it an indispensable tool for the options trader. The various charting modules in OMNESYS NEST XL gives the Option trader the power to gauge the risk and aid him in the analysis of the portfolio.
Not only have traditional market participants, speculators, hedgers, and arbitrageurs all become actively involved in derivative markets, but also the number of retail investors participating in this segment has grown dramatically.
Yet the trader entering the derivative market for the first time may find out that his initial efforts are less than totally successful. Indeed, the learning period in derivatives during which the trader gains full confidence in his ability to understand and thrive under all types of market conditions may require many months or even years of trading experience. Unfortunately, the great majority of investors / traders suffer large monetary losses in this period and do not survive this learning period. The usual characteristics of derivatives, the subtleties of the marketplace, and the unforeseen risks, all seem to conspire against the inexperienced trader and eventually lead to him losing his hard earned money.
OMNESYS NEST XL, through its innovative features, helps the trader avoid the pitfalls and monetary risks posed by the derivatives market.
Customized templates of OMNESYS NEST XL for different applications like :-
- Basket v/s index futures.
- Delta Hedging.
- Options portfolio manager.
- Real time Black Scholes calculator & many more are available.
OMNESYS NEST XL has two main approaches (not mutually exclusive) to managing market risk.
One involves quantifying and controlling each of the risks separately. OMNESYS NEST XL allows the Option Trader to calculate the various Option values and Greeks based on the prevailing Market Prices or the Option trader can also value the portfolio based on some theoretical parameters based on some model like Black Scholes Model or the Binomial Model.
The other involves carrying out a scenario analysis where the impact on the option position of alternative future scenarios is evaluated. This involves calculating the gain/loss on their portfolio over a specified period under a variety of different scenarios.