hot money

noun

: investment funds intended for the highest short-term rate of return

Examples of hot money in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
This pullback eliminates the 'hot money' and provides a more fundamentally solid entry point for a long-term position. Trefis Team, Forbes.com, 5 Feb. 2026 The early February gap up comes on much heavier than usual volume — hot money finds a home. John Navin, Forbes, 15 Feb. 2024 European banks which rely on deposits supplied by third-party platforms should face tougher liquidity requirements to stem the risk of future hot money outflows, according to a senior official. Nicholas Comfort, Bloomberg.com, 6 July 2023 Before the 2015-16 crisis, China’s focus was curbing inflows of hot money betting on a rising yuan rather than stopping outflows, said Becky Liu, head of China macro strategy at Standard Chartered Bank. Quentin Webb, WSJ, 22 May 2022 Some fear that foreign investors who increasingly pour hot money into African startups could be spooked. Alexander Onukwue, Quartz, 13 Apr. 2022

Word History

First Known Use

1936, in the meaning defined above

Time Traveler
The first known use of hot money was in 1936

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Cite this Entry

“Hot money.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/hot%20money. Accessed 11 Mar. 2026.

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