A satellite is in geostationary orbit when it is positioned about 35,786km from the earth and directly above the equator. In other words, get the plane of the equator (0ยบ latitude), extend it to 35,786 km from main sea level and you find the geostationary orbit.
Satellites in geostationary orbit appear to be fixed from a given point on Earth. That's why they are so useful. You can point an antenna in a fixed direction to the satellite and it will keep the link over time. The satellite moves in the same direction planet Earth moves, and because it is in this special orbit, they both move as if they were synchronized.
You may read more about this subject here http://en.wikipedia.org/wiki/Geostationary .
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