Let's get some terminology out of the way first.
A subdomain is a domain that is basically a folder under a primary domain, so the path would look like this:
In the case of a subdomain, the wordpress site CAN be independent of the primary domain, but the URL would always contain the primary domain name.
I can have a Wordpress installation in the primary domain of :
I can also have a Wordpress installation that is in
If it's a separate Wordpress installation in folder 123, it would be considered "independent" of the primary domain's Wordpress installation. However, the domain name is NOT independent because it would still require that you type http://abc.com in order to get to the Wordpress site.
The other term that we use is something called ADD-ON domains. Add-domains are physically subdomains to the primary domain, but virtually (on the network), the server considers it a separate website. Add-on domains use domain names that MUST BE REGISTERED WITH A DOMAIN REGISTRAR. Subdomains do not have this requirement.
http://abc.com/123.com - the files are a physically a subdomain of abc.com, but the server recognizes the website as:
I hope this helps to clarify it for you. An add-on domain is basically a separate website. I wasn't sure based on your question if that is what you really wanted, or if you simply wanted to have a Wordpress site on a subdomain.
BOTH can be done.
How to add an Add-on domain
If you have any further questions, please contact technical support or leave a comment at the bottom of the page.
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