People and organizations might also search for arbitrage opportunities, as when the existing purchasing rate of an asset falls listed below the cost specified in a futures agreement to offer the possession. Speculative trading in derivatives acquired a good deal of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unauthorized investments in futures contracts.The real percentage of derivatives agreements utilized for hedging functions is unidentified, however it appears to be relatively small. Likewise, derivatives agreements account for just 36% of the typical firms' overall currency and interest rate direct exposure. Nevertheless, we know that numerous firms' derivatives activities have at least some speculative part for a variety of factors.