Individuals and institutions might also look for arbitrage chances, as when the current buying rate of a possession falls below the rate specified in a futures contract to sell the asset. Speculative trading in derivatives got a good deal of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unapproved financial investments in futures contracts.The real proportion of derivatives agreements used for hedging functions is unidentified, but it seems fairly little. Likewise, derivatives agreements represent only 36% of the mean firms' overall currency and rate of interest exposure. However, we understand that many companies' derivatives activities have at least some speculative component for a variety of reasons.