Individuals and organizations might also look for arbitrage opportunities, as when the current purchasing cost of an asset falls listed below the cost specified in a futures contract to offer the property. Speculative trading in derivatives gained a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized investments in futures agreements.The true percentage of derivatives contracts utilized for hedging purposes is unknown, however it appears to be fairly little. Likewise, derivatives agreements account for just 36% of the typical companies' total currency and interest rate direct exposure. Nonetheless, we understand that many companies' derivatives activities have at least some speculative part for a variety of factors.