hot money

American  

[hot muhn-ee] / ˈhɒt ˈmʌn i /

noun

1. Finance, Stock Exchange. funds transferred suddenly from one country to another chiefly to avoid depreciation in value or to take advantage of higher interest rates.

   Too much foreign investment can lead to major outflows of hot money later on, making a country’s economy vulnerable.

2. Informal. the confidence that experts have about a specified outcome or result.

   The hot money is on blues and greens being in this season.

3. paper money that is stolen and can be traced or identified, especially because the bills are marked.

   The robber tried to pass some of the hot money in another state, but was caught.

   This kind of business is ideal for laundering hot money.

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hot money British  

noun

1. capital transferred from one financial centre to another seeking the highest interest rates or the best opportunity for short-term gain, esp from changes in exchange rates

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Etymology

Origin of hot money

First recorded in 1925–30

Example Sentences

See Examples For:

hot money

Just being cheap isn’t enough to attract hot money — there also has to be some belief that Wall Street vultures are circling.

From MarketWatch ● Jun. 1, 2026

These new structures allow for a level of liquidity that is a far cry from 2008’s hot money problem.

From Barron's ● May 30, 2026

Citi data showed on Monday that outflows resumed last week, with real money leaving Latin America and emerging Europe, the Middle East and Africa while hot money, or speculative capital, left Asia and Latam.

From Reuters ● Mar. 9, 2023

“While short-term hot money can be made by those who want to flip IPOs, this is not a game for Fred and Ethel looking for long-term value.”

From Washington Post ● Mar. 29, 2019

While "hot money" is very useful as a lubricant on the wheels of liquid capital markets in rich countries - it can be destructive in less liquid, immature economies or in economies in transition.

From After the Rain : how the West lost the East by Vaknin, Samuel