Individuals and organizations may also try to find arbitrage chances, as when the present purchasing price of an asset falls listed below the cost defined in a futures agreement to sell the possession. Speculative trading in derivatives got a great offer of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unapproved investments in futures contracts.The real proportion of derivatives contracts used for hedging purposes is unknown, however it seems fairly little. Also, derivatives contracts represent just 36% of the median companies' overall currency and rate of interest exposure. Nevertheless, we know that lots of companies' derivatives activities have at least some speculative element for a variety of reasons.