Archive for the ‘Derivatives’ Category
Simple Organic Compounds Containing Carbon, Hydrocarbons With Functional Groups
Carbon (C) is present in most compounds, both inorganic and organic. Carbon is fairly unreactive, but at high temperatures is forms compounds with hydrogen, oxygen and various metals. Carbon is the only element with the ability to form chains and cyclical compounds of carbon atoms that line up next to each other in various lengths. This makes carbon the basis of organic chemistry. Thanks to carbon, more than 10 million known organisms survive, even thrive, on this Earth. In addition, there are around 200,000 known inorganic compounds which contain carbon.
Carbon is an important rock-forming mineral, forming carbonates. As carbon dioxide (CO2), it can dissolve in water and is also found in the atmosphere. It is an important component of all plants and animals, of all living organisms. Those organisms which died in the early years of our planet’s history have helped to create a huge supply of carbon and carbon-based fossil fuels, such as coal, oil and natural gas.
In organic material which contains carbon, its atoms are bonded together in simple, single bonds (in saturated compounds) or in double and triple bonds (in unsaturated compounds). Carbon chains are the result. The sites which are not used for direct carbon-to-carbon bonding can be used for bonds with hydrogen (hydrocarbons) or with other elements.
According to the type of carbon chain present, we can differentiate between compounds with open chains (linear or branched – aliphatic or acyclic) and cyclic compounds. Aliphatic compounds are categorised in the ranks of branched carbon-containing compounds. Cyclical carbon-containing compounds are distinguished by their carbon atoms being arranged in a circle, in a closed cycle. Of these, the most important are aromatic carbon compounds, beginning with the founding member of the aromatic compounds, benzene (C6H6). In it, carbon atoms form a circle together, with the individual bonds between them showing both single and double bond character, a sort of hybrid between the two. Some of the more important organic compounds are fats, proteins and hydrocarbons.
Hydrocarbons
Hydrocarbons are composed exclusively of atoms of carbon and hydrogen. They are the simplest of all organic compounds. There are three types of homologous families of hydrocarbons: alkanes, alkenes and alkynes. Alkanes contain only single bonds between carbon atoms. Alkenes contain at least one double bond. Alkynes contain at least one triple bond. Most of these types of hydrocarbons can exist with the same chemical formula in different form or chemical structure. When a compound has the same chemical formula but two possible structures, these two structures are called isomers.
Hydrocarbon molecules can also contain what are called functional groups. These are groups which contain at least one atom which is neither carbon nor hydrogen. These functional groups can affect the chemical behaviour of the molecule that contains them by giving that molecule special chemical properties. One example is ethanol – CH3CH2OH. Here, the functional group is -OH, with oxygen the determining atom.
Stereochemistry
Stereochemistry is simply the three-dimensional arrangement of a molecule. Organic molecules of the same chemical formula can have their atoms arranged differently in space. When they do, they often have significantly different chemical properties.
Isomers are those types of compounds which have the same chemical formula but different atomic arrangements in space. Isomers can be divided into stereoisomers and structural isomers.
Stereoisometric molecules change their atomic arrangement as a result of changes in pressure or temperature. All bonds and types of bonds (single, double, triple) are conserved in the same original fashion, however.
Structural isomers have atoms which change their position in a molecule. One example is a linear compound (where all of the carbon atoms are lined up in linear fashion), compared to the same chemical formula compound with a shorter linear structure and branching (chain isomerism). Functional groups can change their position (functional isomerism), or can differ from another isomer in the position of a double or triple bond (bond isomerism).
The number of carbon atoms in a hydrocarbon determines how many forms that compound can take. The number of possible isomers in a compound rises as the number of carbon atoms it contains rises.
Alkanes, Alkenes, Alkynes
Hydrocarbons are composed exclusively of oxygen and hydrogen. There are three types of homogeneous hydrocarbons (whose members differ by one CH2 unit): alkanes, alkenes and alkynes. The difference between these three groups is in the bond types between carbon. Alkanes form only single bonds, alkenes form double bonds, and in alkynes there is at least one triple bond.
The simplest alkane is methane. It is formed from one atom of carbon which is bonded with four atoms of hydrogen. If a CH2 group is added, the second alkane compound is formed. The naming of alkanes, as with all other hydrocarbons, is based on the rules of IUPAC (International Union of Pure and Applied Chemistry). Alkane names all end with -ane (from alkan). In front of this ending is a prefix which describes the amount of carbon atoms, corresponding with either a Greek or Latin number. The first four alkanes are named according to historical convention.
Methane: CH4, ethane: C2H6, propane: C3H8, butane: C4H10, pentane: C5H12. The formula of all alkanes can be calculated according to the simple formula CnH2n+2. The number of carbon atoms is the defining factor as to which alkane is which. The alkanes, despite how many carbon atoms they contain, all share some common characteristics. For example, it is typical for all alkanes that they are not highly reactive, they burn well, and they react analogously with halogens in photochemical substitution reactions (exchange reactions). With increasing size of the molecule in the alkane family, alkanes begin to differ from one another in a fundamental way. The first four alkanes are found in the gaseous state of matter. Alkanes containing 5-16 carbon atoms are liquids, and alkanes with 17 or more carbon atoms are solids. Boiling and melting points rise with increasing atomic number.
Branched alkanes are first named according to the amount of carbon atoms they contain in a row. If a radical is contained in an alkaline compound, the -ane ending is replaced by -yl. The branch must be denoted in some way, so as to pinpoint its location on the main carbon chain. For this reason, carbon atoms are numbered from left to right from least to greatest number, so that the branch is arbitrarily assigned the lowest number possible. The main chain has to be the longest one in the molecule. If there are multiple chains in the molecule, they are assigned letters of the alphabet.
Properties and Reactivity
The bond between carbon and hydrogen in an alkane molecule is a weak, polar atomic bond. For this reason, the individual atoms of alkanes carry only a very weak partial charge. These partial charges cancel each other out over the molecule, since it is perfectly symmetrical. The result is a molecule which is non-polar overall. This is not to say one molecule of an alkane does not interact electrostatically with other atoms of its own kind. Weak van der Waals intermolecular forces are found between non-poplar molecules, causing them to mutually attract and repel each other in a weak way. The size of these forces increases as molecule size increases. According to this idea, the characteristics of unbranched alkanes change with increasing size of the carbon chain.
At room temperature, the first four alkanes are found in the gaseous state of matter. Pentane is the first of the liquid alkanes. Until hexane (16), alkane compounds become more and more viscous (parafin oil), because their viscosity rises as the strength of van der Waals forces increases. From heptadecane (17), the alkanes are solids (parafins). Their melting and boiling points rise as a function of the number of carbons in their chains.
Alkanes burn readily. When they do burn, carbon dioxide and water are the products. With increasing chain size, alkanes, given the same amount of oxygen, burn less easily, so that more carbon soot (elementary carbon) is formed with increasing chain size. In alkane molecules, all bonds are said to be saturated. For this reason, alkanes are not very reactive. They do tend to form compounds with halogens.
Van der Waals Forces
Because molecules carry a partial charge, there are forces and attractions between neighbouring molecules. These forces between molecules are very small, but they are big enough to hold the molecule together. The longer the carbon chain of a molecule, the more atoms can take part in these mutual forces, and the greater the resultant attractive force. If the inner forces in smaller alkanes are small, they may not be strong enough to hold the molecule together at room temperature. With increasing carbon chain size, however, these intramolecular forces do increase. At a chain length of 17 carbon atoms, the van der Waals forces are so strong that the individual molecules are held together in the solid state of matter.
Alkenes
Alkenes (olef
An offshore trading license for financial and commodity based derivatives can be obtained from a number of offshore jurisdictions. Using such a license an individual or corporation can trade in futures, options, interest rates, foreign exchange, stocks, and more. Government application and total setup cost for such a license will typically run about $27,000. Important issues start with picking the most appropriate and cost effective jurisdiction for your or your corporation’s needs. It is important to choose a trusted advisor when setting up a financial and commodity based derivatives business. Not all jurisdictions are equally tax advantaged and not all are equally protective of your privacy.
The day when one could only do business in or from one’s home country are long gone. More and more individuals and corporations are choosing to bank offshore, start businesses offshore, trade offshore, and set up foundations to protect their assets and their privacy. As this trend continues more and more international business opportunities present themselves. The ability to obtain a license for trading financial and commodity based derivatives from an offshore location is a good example of the opportunities available today.
Better a Broker than a Trader
Although all traders and investors look to profit from their financial expertise by picking winners in the various trading markets the best and most secure money is typically in acting as a broker. Brokers make their commission when the trade goes up and when it goes down. The ability to trade offshore is a plus to many who are moving their assets to offshore foundations, corporations, and bank accounts. Obtaining a license to provide trading opportunities in stocks, futures, commodities, and options can be very lucrative in this increasingly international world.
Setting Up, Getting a License, and What it Will Cost
The first and most important part of setting up a financial and commodity derivatives brokerage is pick the jurisdiction. You will want to consider tax advantages as well as personal and asset privacy matters. Depending upon the jurisdiction the license may allow you to do more or less with your business. Make sure what the license entails for each jurisdiction you consider.
The application will entail providing personal and financial matters for all officers, shareholders, and directors of the business. If any or all of the individuals involved wish it is possible to use nominees. This is a matter to discuss with your counsel in setting up the business.
While typical setup cost will run about $27,000 the annual expenses will be around $12,500.
In short it is entirely possible to provide brokerage services in a number of offshore locations. Being clear about your business plans is where to start. Then you will want to find a trusted advisor when setting up in the right jurisdiction and doing it in such a way as to maximize tax advantage and profit potential.
When you set up your offshore brokerage don’t forget that even from offshore you can outsource your back office work offshore to the most cost effective locations. Everything from getting the right software to run your business to helping set up an effective webs site to attract customers will fall into your range of concerns. Starting with the right advisor may well be the most important step.
When I managed national real estate and construction for the then ‘Tiffany’ of investment firms I learned from the CEO that should the 1932 Glass Steagall Banking Act ever be rescinded-it was certain that speculators would game the system and cause another Great Depression.
Wanting to know more I became licensed on all exchanges-and started paying close attention when derivatives were de-regulated in 1992. Gold at the time was $300. Today it’s over $1,000 with China, Russia, France and the UN calling for the USD to be removed as the reserve currency, a status that has long shored up our economy.
In 2003, Warren Buffet termed derivatives ‘financial weapons of mass destruction created by mad men’. At that time their ‘value’ stood at $9 trillion. Today, that number has reached $1.4 quadrillion and continues to expand geometrically.
Can you picture even $3 trillion? In stacked-up dollar bills it would reach from Earth to the Moon 238K miles away. If you’d spent a million dollars each day for 2,000 years ago–even that would ‘only’ amount to three-quarters of a trillion dollars!
A quadrillion is a thousand trillion. A trillion is a thousand billion. A billion is a thousand million. The relative scale of the world’s financial engines in relation to those $1.4 quadrillion derivatives follows in U.S. dollars:
1. The U.S. GDP is $14 trillion.
2. The Global GDP is $45 trillion.
3.Global real estate value is $65 trillion.
4. Global stock and bond markets are $74 trillion.
5. Global derivatives exceed all combined global wealth by 31 times.
6. The global population is 6.8 billion people. The derivatives market is equal to $206,000 USD per every person on the planet.
‘When I Ruled the World’:
The public is right to be angry at the US Big Banks that caused the meltdown: Citi, BofA, JP Morgan, Chase, Wells Fargo–and both sides of Congress that are in their pockets. The banks are still using customer deposits protected by FDIC insurance to speculate in derivatives, instead of lending to small business. They’ve not paid back taxpayer bailouts, and have rewarded themselves with billions in bonuses while raising customer fees.
It’s up to the people to stop feeding the monster banks. Check out the ‘Move Your Money’ online movement. Find out how to determine which local banks and credit unions are well managed, and stop supporting the big banks that are endangering us all, and are turning America into the Coldplay lyric ‘When I Ruled the World.’
Dong quai dietary supplements are obtained from the roots of Angelica polymorpha. Dong quai extracts contain at least 6 coumarin derivatives including bergapten, osthol, oxy-peucedanin, and psoralen and two furocoumarin derivatives, sen-byak-angelicole and 7-demrthylsuberosin. Coumarin derivatives have anticoagulant, vasodilating, and antispasmodic activity. Also, osthol may have central nervous system stimulant activity.
Other components found in the essential oil include n-butyl-pthalide, cadinene, isosafrole, and safrole. Safrole may be carcinogenic, so ingestion should be avoided. Root extracts may contain various lactones and vitamins A, E, and B12 Dong quai extracts may have a modulatory effect on endogenous estrogens. Common trade names include Women’s Ginseng, and combination products such as Menopausal Formula, Nature’s Fingerprint, PMS Formula, and Rejuvex.
Reported uses
Dong quai is widely used in traditional Chinese medicine and continues to be popular in China and elsewhere. It’s used to treat menstrual disorders, as an analgesic in rheumatism, and to suppress allergy symptoms.
Dong quai is used to treat anemia, hepatitis, hypertension, migraines, neuralgias, rhinitis, and gynecologic disorders including irregular menstruation, dysmenorrhea, premenstrual syndrome, and menopausal symptoms.
Administration
Capsules: 500 mg by mouth, or 1 to 2 capsules three times a day
Liquid extract: 1 to 2 gtt three times a day.
Hazards
Dong quai may cause bleeding gums, diarrhea, blood in the stool, hematuria, photodermatitis, bleeding, fever, or cancer. When used with warfarin, dong quai can potentiate anticoagulant effects.
Similar effects are possible with other anticoagulants. There is also an increased risk of photosensitivity reactions with dong quai. Patients taking an anticoagulant should avoid use. Because of potential effects on uterine contractions and unknown direct effects on the developing fetus, pregnant and breast-feeding patients shouldn’t use dong quai.
Clinical considerations
Monitor patient for signs of easy bruising or bleeding.
If dong quai must be used with another anticoagulant, closely monitor PT and International Normalized Ratio.
Monitor patient for photosensitivity reactions.
If patient is pregnant or breast-feeding, advise her not to use dong quai.
Advise patient to keep this and other herbal products out of reach of children.
Tell patient to remind pharmacist of any herbal or dietary supplement that he’s taking when obtaining a new prescription.
Advise patient to consult his health care provider before using an herbal preparation because a treatment with proven efficacy may be available.
Research summary
The concepts behind the use of dong quai and the claims made regarding its effects haven’t yet been validated scientifically.
The Forex market, or more formally the Foreign Exchange Market, is for the buying and selling of currencies throughout the world. Trades on the market are done electronically — often through Robots — thus, there has been much written about “automatic” or auto Forex trading. It is currently one of the fastest growing strategies for making money anywhere.
Major trading centers are located in London, Tokyo and New York, with other trading centers located in Frankfurt, Zurich, Singapore, Hong Kong, Paris, and Geneva.
The Forex is the largest global market with over $3 trillion traded daily, dwarfing the New York Stock Exchange. The market is open 24 hours a day, 5.5 days a week. The market is made up of individual traders, institutional investors, banks, investment firms, hedge-funds, pension funds, and sovereign governments. It is an unregulated market that is easily entered or exited by investors — making it impossible to know how many players are in the market at any given time.
It goes without saying that the goal of successful trading in the Forex market is to make money. This is accomplished by taking long or short positions after correctly anticipating a chosen currency pairs movement, up or down, at the right price to open the trade. This must be done with total precision. Many traders attempt to formulate a trading strategy in which t risk is minimized and potential profit maximized. Anyone who has traded for any length of time knows this is extremely difficult for most to accomplish successfully.
The most important aspect of trading is to understand and minimize risk. This market is not only huge, and highly liquid – it is also extremely volatile. That fact alone makes it doubly important to reduce the risk as much as possible. That is why it is critically important to understand your exit strategy before you ever open up a trade. Knowing that, successful traders know their “take profit levels” as well as their “stop loss levels” as the trade is executed from the beginning.
Opportunities to make money in Forex trading include being able to notice currency valuation trends, up or down, and, once determined, trade long or short, based on the directional movement. This entails careful study of a currency’s technical charts and the ability to overlay it onto another currency chart to gauge directional movement. Again, this is a no small task. Enter the Automated Robotic trading.
These “robots” are nothing more than software that has been written to track the trends, performing complex calculations and equations, calculating when to enter the market and when to exit. The key of course, is in the programing. Auto Forex Trading is being employed by successful individuals and institutions every day. The best Forex auto trading robots even allow the investor to individually set the risk parameters they are willing to assume based on their individual risk tolerance.
Auto Forex Trading strategies are varied, with most not worth your time or money. Every investor should assess the pros and cons of every software system they may be interested to make sure is right for them. Remember, educating yourself is the best way to achieve success in the Forex Market.
Futures trading can be used for two main purposes; Speculation and Hedging. While most retail traders get involved in futures trading for the purpose of leveraged speculation, it cannot be forgotten that the true purpose of futures contracts is for the purpose of hedging.
Hedging using futures is technique most professional money managers use. However, there is one main problem with hedging using futures and that is the fact that the settlement price of futures contracts isn’t the actual spot price of their underlying asset. That’s right. In other words, the price basis used by futures contracts isn’t the actual price of the underlying asset but a price derived from the actual price known as the “Settlement Price”. The problem with settlement price is that it can vary significantly from the actual price of the underlying asset and this difference in pricing may cause problems with hedging using futures contracts.
Settlement price is determined at the end of each trading day or trading period by various methods, including price averaging across a certain period and reflects the future price expectation of the underlying asset at various expiration months. This is why futures contracts of different months have a different price even though they are all based on the same underlying asset.
As a result, it is nearly impossible to hedge a position to delta neutrality completely using futures.
This is also why options are becoming the new favorite hedging instrument of professional portfolio managers and are used much more commonly in stock hedging than their single stock futures counterpart.
Options base their price on the actual price of the underlying asset itself instead of a derived price of the underlying asset. As such, options are capable of the precise level of hedging that futures are not quite capable of.
Traditionally, futures contracts have been used for price protection between buyers and sellers of a particular commodity. By entering into a contract to trade the commodity at a specific price right now, buyers are protected against price hikes and sellers are protected against price drops. This is the hedging function that exchange traded futures still perform but the fact that the settlement price of a futures contract only converges with the spot price of the actual underlying asset close to or on expiration date itself, it is hard to use futures for precise short term hedging that may last only days and comes nowhere close to the expiration date.
Derivatives instruments such as futures and options are originally designed as hedging tools. As the demand for highly precise hedging over very short periods of time increases, futures are slowly becoming less popular compared to options in terms of non-commodity hedging.





