Individuals and institutions may likewise try to find arbitrage opportunities, as when the existing buying price of a property falls below the cost specified in a futures agreement to sell the possession. Speculative trading in derivatives got a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized financial investments in futures contracts.The true proportion of derivatives contracts used for hedging purposes is unidentified, however it seems relatively little. Likewise, derivatives contracts account for just 36% of the average companies' overall currency and interest rate direct exposure. Nevertheless, we understand that numerous firms' derivatives activities have at least some speculative element for a range of factors.