Individuals and organizations might also search for arbitrage chances, as when the present purchasing cost of an asset falls below the rate defined in a futures contract to offer the property. Speculative trading in derivatives acquired a lot of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized investments in futures contracts.The true proportion of derivatives contracts used for hedging purposes is unidentified, but it seems relatively little. Also, derivatives agreements account for just 36% of the average firms' overall currency and rate of interest direct exposure. Nevertheless, we understand that lots of firms' derivatives activities have at least some speculative part for a variety of factors.