Individuals and organizations might likewise look for arbitrage chances, as when the existing buying rate of a possession falls below the cost defined in a futures agreement to sell the asset. Speculative trading in derivatives gained a good deal of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized financial investments in futures agreements.The real percentage of derivatives agreements utilized for hedging purposes is unknown, however it appears to be relatively little. Likewise, derivatives contracts account for just 36% of the median firms' overall currency and rates of interest exposure. However, we understand that numerous firms' derivatives activities have at least some speculative element for a variety of factors.