Editing Derivative (finance) (section)

===Proportion used for hedging and speculation===
The true proportion of derivatives contracts used for hedging purposes is unknown,<ref>{{cite journal|author1=Sergey Chernenko|author2=Michael Faulkender|title=The Two Sides of Derivatives Usage: Hedging and Speculating with Interest Rate Swaps|journal=The Journal of Financial and Quantitative Analysis|date=December 2011|volume=46|issue=6|pages=1727–1754|doi=10.1017/S0022109011000391|citeseerx=10.1.1.422.7302|s2cid=13928534}}</ref> but it appears to be relatively small.<ref>Knowledge@Wharton (2012). [http://knowledge.wharton.upenn.edu/article.cfm?articleid=709 "The Changing Use of Derivatives: More Hedging, Less Speculation"]</ref><ref>{{cite SSRN|last=Guay |first=Wayne R.  |last2=Kothari |first2=S.P. |year=2001 |ssrn=253036 |title=How Much do Firms Hedge with Derivatives?}}</ref> Also, derivatives contracts account for only 3–6% of the median firms' total currency and interest rate exposure.<ref name="knowledge.wharton.upenn.edu">Knowledge@Wharton (2006). [http://knowledge.wharton.upenn.edu/article.cfm?articleid=1346 "The Role of Derivatives in Corporate Finances: Are Firms Betting the Ranch?"]</ref> Nonetheless, we know that many firms' derivatives activities have at least some speculative component for a variety of reasons.<ref name="knowledge.wharton.upenn.edu"/>