In the stock market, people call short-term assets flowing between financial markets in pursuit of high profits as hot money. To put it bluntly, hot money is short-term investors'

buying stocks with hot money, but hot money does not specifically refer to the operation of stocks. The speculative movement of international short-term funds is mainly to avoid political risks and pursue the interests of exchange rate changes, price changes of important commodities or international securities, and hot money is speculative behavior that pursues the interests of exchange rate changes.

Although the general definition can be said in this way, it is not an easy task to identify and determine the amount of hot money. The first is the false prosperity that hot money comes in and contributes to the economy. Secondly, the influx of hot money increases the scale of foreign exchange, which affects the normal operation of monetary policy, disrupts the normal operation of the financial system and intensifies the pressure of domestic inflation.

hot money, on the other hand, is extremely active in the stock market, with flexible operation methods. When the management made a speech and the fund was still hesitating and waiting to see, the hot money dared to enter the market to open positions on a large scale without the active participation of the fund, which made the turnover increase rapidly. Having a high investment enthusiasm will often become the leading indicator of a rebounding Depth Charge and a stable market. Following the operation idea of hot money will often help investors to grasp market opportunities and gain short-term gains more quickly.