Proportion used for hedging and speculation The true proportion of derivatives contracts used for hedging purposes is unknown, but it appears to be relatively small.Knowledge@Wharton (2012). "The Changing Use of Derivatives: More Hedging, Less Speculation" Also, derivatives contracts account for only 3–6% of the median firms' total currency and interest rate exposure.Knowledge@Wharton (2006). "The Role of Derivatives in Corporate Finances: Are Firms Betting the Ranch?" Nonetheless, we know that many firms' derivatives activities have at least some speculative component for a variety of reasons.
Proportion .used for hedging and speculation The true proporti,on of derivatives contracts used for hedging purposes is unknown, but it appears to be relatively small.Knowledge@Wharton (2012). "The Changing Use of Derivatives: More Hedging, Less Speculati,on" Also, derivatives contracts account for only 3–6% of the median firms' total currency and interest rate exposure.Knowledge@Wharton (2006). "The Role of Derivatives in Corporate Finances: Are Firms Betti,ng the Ranch?" Nonetheless, we know that many firms' derivatives activities have at least some speculative component for a variety of reasons.