A federal territory is an administrative area under the direct and usually exclusive jurisdiction of a federation's national government. A federal territory is part of a federation, but not part of any federated state. The states constitute the federation itself and share sovereignty with the federal government, while a territory does not have sovereign status and is constitutionally dependent on the federal government.
This article possibly contains original research. (November 2017)
Unlike a federal district (which is directly controlled by the federal government), a territory may have some degree of self-rule, but the terms are used somewhat differently in different federations.