This category is not involved in defining the prices or controlling them. They are basically transnational and home-country’s money managers. They may deal in hundreds of millions of dollars, as their portfolios of investment funds are often quite large.

These participants have investment charters and obligations to their investors. The major aim of hedge funds is to make profits and grow their portfolios. They want to achieve absolute returns from the Forex market and dilute their risk. Liquidity, leverage, and low cost of creating an investment environment are the advantages of hedge funds.

Fund managers mainly invest on behalf of the various clients they have, such as the pension funds, individual investors, governments and even the central bank authorities. Sovereign wealth funds that manage government-sponsored investment pools have grown at a fast rate in the recent years.