People and organizations might also look for arbitrage chances, as when the present purchasing price of a property falls below the rate specified in a futures contract to offer the asset. Speculative trading in derivatives acquired a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unapproved financial investments in futures agreements.The true percentage of derivatives contracts utilized for hedging purposes is unknown, but it seems relatively little. Also, derivatives agreements represent just 36% of the average firms' total currency and interest rate exposure. However, we understand that lots of companies' derivatives activities have at least some speculative part for a range of reasons.