1. A computer-implemented method for improving performance in a nested virtualization environment, the method comprising: detecting, by a first software, a first set of features supported by a hardware device having one or more processors, wherein the first software runs on the hardware device, wherein the first software is implemented to host a second software that runs in a nested operating environment over the first software, wherein the first software supports a second set of features utilized by the second software, wherein the second set of features is not supported by the hardware device; the first software configured to emulate the second set of features utilized by the second software, when the second software runs in the nested environment over the first software; and the first software exposing one or more features in the second set of features to the second software so that the second software detects and enables the exposed features for a third software hosted by the second software, wherein when the third software issues an instruction to be performed by the one or more processors of the hardware device, it is determined whether the instruction may be executed based on the first set of features supported by the hardware device or based on the second set of features supported by the first software, wherein the first software emulates a first feature to manage the instruction, in response to determining that the instruction may be executed based on the first feature in the second set of features, wherein the emulating is performed, in response to the physical machine switching to a second mode from a first mode, when it is determined that the physical machine does not support the feature needed to execute the instruction.