Individuals and institutions may also try to find arbitrage chances, as when the present buying rate of an asset falls below the price specified in a futures agreement to offer the asset. Speculative trading in derivatives got a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unauthorized investments in futures agreements.The real proportion of derivatives contracts utilized for hedging purposes is unidentified, however it appears to be reasonably small. Likewise, derivatives agreements represent just 36% of the mean firms' total currency and rate of interest direct exposure. Nonetheless, we understand that numerous firms' derivatives activities have at least some speculative part for a variety of reasons.