As the number of new hedge funds grows, existing funds have found themselves in a continuous search for new investments. The latest fad among hedge funds is currency trading. The forex markets are the largest and most liquid in the world, and are largely unregulated. Because the ability to buy and sell multi-million dollar positions is paramount, hedge funds have piled into the markets. Industry experts now feel hedge funds moving in tandem are able to single-handedly defend or move currencies, which is a scary thought for those who though currency markets were immune to manipulation. Hedge funds, however, have argued that they function as a positive force in the markets. The Globe and Mail reports:

“I think that the more players that are out there, it’s going to improve liquidity and lead to less misalignments because there should be more money on both sides of the markets.”

Read More: Hedge funds throwing their weight around in global currency markets