People and institutions may likewise look for arbitrage opportunities, as when the present buying price of a property falls listed below the rate specified in a futures contract to sell the asset. Speculative trading in derivatives gained a good deal of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unauthorized financial investments in futures agreements.The true proportion of derivatives contracts utilized for hedging purposes is unidentified, but it appears to be relatively little. Likewise, derivatives contracts represent just 36% of the average firms' total currency and rate of interest exposure. Nonetheless, we know that many companies' derivatives activities have at least some speculative part for a range of factors.