Individuals and organizations might also search for arbitrage chances, as when the present buying price of a property falls below the price defined in a futures contract to sell the possession. Speculative trading in derivatives acquired a good deal of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unapproved investments in futures contracts.The real percentage of derivatives contracts utilized for hedging functions is unknown, however it appears to be relatively little. Likewise, derivatives contracts account for just 36% of the typical firms' total currency and rates of interest exposure. However, we understand that numerous companies' derivatives activities have at least some speculative element for a variety of reasons.