Individuals and institutions might also try to find arbitrage chances, as when the present buying cost of an asset falls below the rate specified in a futures agreement to sell the asset. Speculative trading in derivatives got a terrific deal of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unapproved financial investments in futures contracts.The true percentage of derivatives contracts used for hedging functions is unknown, however it seems relatively small. Also, derivatives contracts represent just 36% of the mean firms' total currency and interest rate direct exposure. Nevertheless, we understand that many firms' derivatives activities have at least some speculative component for a range of factors.