Individuals and institutions might also search for arbitrage chances, as when the existing buying price of a property falls listed below the rate defined in a futures agreement to offer the property. Speculative trading in derivatives got a terrific offer of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unapproved investments in futures contracts.The real proportion of derivatives agreements used for hedging purposes is unidentified, however it appears to be fairly small. Likewise, derivatives contracts account for just 36% of the average firms' overall currency and rate of interest exposure. However, we understand that many companies' derivatives activities have at least some speculative part for a variety of factors.