TRADING GLOSSARY
Sovereign debt
Sovereign debt is money owed by a national government, typically through bonds, bills, or loans. It may be denominated in domestic or foreign currency, and its risk depends on factors including repayment capacity, currency exposure, and legal terms.
EXAMPLE
In a hypothetical case, a government issues bonds denominated in a foreign currency. A weaker domestic currency increases the local-currency cost of servicing them.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure