Nematic refers to a phase of liquid crystals where the molecules are oriented in parallel but do not have a fixed position. This alignment allows for unique optical properties, making nematic liquid crystals useful in displays, such as those found in LCDs (liquid crystal displays). In the nematic phase, the molecules can flow like a liquid while maintaining their directional order. This characteristic enables the manipulation of light, which is essential for various applications in electronics and optics, including televisions and smartphone screens.