People and organizations may also look for arbitrage opportunities, as when the current purchasing rate of a property falls listed below the rate defined in a futures contract to offer 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 agreements.The true percentage of derivatives agreements utilized for hedging functions is unidentified, however it seems reasonably small. Also, derivatives contracts represent only 36% of the average firms' total currency and interest rate exposure. Nonetheless, we understand that many firms' derivatives activities have at least some speculative part for a variety of reasons.