CFDs are complex financial instruments and carry a high level of risk due to leverage. A significant proportion of retail investors incur losses when trading leveraged products such as CFDs. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
If you’re wondering what a debtor is, it’s the person or entity that has the obligation to pay a sum of money, deliver goods, or provide a service to another party, known as a creditor. The relationship between the two arises from a contract, a commercial transaction, or a legal obligation. In finance, understanding this concept is key to analyzing balance sheets and assessing credit risk.