Individuals and institutions might also search for arbitrage chances, as when the current buying price of a possession falls below the price defined in a futures agreement to offer the asset. Speculative trading in derivatives acquired a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized investments in futures agreements.The real percentage of derivatives agreements used for hedging functions is unidentified, but it seems fairly small. Likewise, derivatives contracts represent just 36% of the typical firms' overall currency and rate of interest direct exposure. However, we understand that many firms' derivatives activities have at least some speculative component for a range of factors.