Hot money is that money which flows regularly between financial markets as investors attempt to ensure they get the highest short term interest rates possible.

Capital transferred from one financial centre to another seeking the highest interest rates or the best opportunity for short term gain, mainly from changes in exchange rates.It is also known as flexible income.

Money or capital received through Foreign Institutional Investors (FIIs) is known as Hot Money.


2 thoughts on “HOT MONEY

  1. International students are using this expression — “hot money” in essays about opportunistic investments. Is there a more succinct or more academic expression available?


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