In the presence of capital export restrictions or exchange controls, this is a synonym for flight capital, i.e. money illegally exported outside the country. In general, this refers to money moved across country borders in response to interest rate differences which is moved away again when the interest rate differential disappears. Français: Fuite de capitaux Español: Capital especulativo, dinero especulativo
Holdings of very liquid assets, which may be sold or cashed on short notice and then removed from a country, often in response to expectations of devaluation or other financial crisis.
money that is transferred from country to country to take advantage of higher interest and exchange rates.
Short term international capital movements, motivated by interest rate differentials or expectation of exchange rate movements.
Investment funds seeking high yields that are short term. Borrowers enticing hot money should be ready to lose it when another borrower offers a higher rate. See: Risk/Reward Ratio; Short Term; Yield
Extremely short term funds.
Money that moves across country borders in response to interest rate differences and that moves away when the interest rate differential disappears.
Money that flows regularly between financial markets in search for the highest short term interest rates possible.
In the language of crime, hot money refers to stolen currency that can easily be traced back to the crime, such as marked bills or new currency with consecutive serial numbers. ---- In economics, hot money refers to funds which flow into a country to take advantage of a favourable interest rate, and therefore obtain higher returns. They influence the balance of payments and strengthen the exchange rate of the recipient country while weakening the currency of the country losing the money. These funds are held in currency markets by speculators as opposed to national banks or domestic investors.