Individuals and institutions may also look for arbitrage chances, as when the current buying rate of a property falls listed below the price defined in a futures agreement to offer the property. Speculative trading in derivatives acquired a fantastic offer of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unapproved investments in futures agreements.The true proportion of derivatives agreements used for hedging purposes is unidentified, however it seems fairly little. Likewise, derivatives agreements account for only 36% of the mean firms' overall currency and rate of interest direct exposure. Nevertheless, we understand that many firms' derivatives activities have at least some speculative part for a variety of reasons.