People and organizations may also try to find arbitrage opportunities, as when the current buying cost of an asset falls listed below the rate defined in a futures agreement to offer the asset. Speculative trading in derivatives gained a fantastic deal of prestige in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized investments in futures contracts.The true percentage of derivatives contracts utilized for hedging purposes is unknown, however it seems reasonably little. Likewise, derivatives contracts account for just 36% of the median firms' total currency and rates of interest exposure. However, we know that many companies' derivatives activities have at least some speculative element for a variety of factors.