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

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

“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 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 Los Angeles Times • Mar. 29, 2019

While long-term capital flows should be completely liberalized, encouraged and welcomed - the short term, "hot money" type should be controlled and even discouraged.

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