Individuals and organizations may also look for arbitrage chances, as when the existing purchasing price of a property falls listed below the rate specified in a futures agreement to offer the property. Speculative trading in derivatives acquired a fantastic deal 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 relatively small. Likewise, derivatives agreements account for only 36% of the mean firms' overall currency and rates of interest exposure. However, we understand that many companies' derivatives activities have at least some speculative part for a variety of factors.