Individuals and organizations might also look for arbitrage chances, as when the present purchasing cost of a possession falls below the rate specified in a futures agreement to offer the possession. Speculative trading in derivatives gained a good deal of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unauthorized investments in futures agreements.The true proportion of derivatives agreements used for hedging functions is unknown, however it appears to be fairly small. Likewise, derivatives agreements represent just 36% of the average firms' total currency and interest rate exposure. Nonetheless, we understand that numerous firms' derivatives activities have at least some speculative element for a range of reasons.