Individuals and institutions might likewise try to find arbitrage chances, as when the current buying rate of a property falls below the price specified in a futures contract to offer the property. Speculative trading in derivatives acquired a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unauthorized financial investments in futures agreements.The real proportion of derivatives contracts used for hedging functions is unknown, however it seems fairly small. Also, derivatives contracts represent just 36% of the typical companies' total currency and interest rate direct exposure. However, we understand that many companies' derivatives activities have at least some speculative part for a range of reasons.