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The plane of the equator is defined by the earth's equator. The plane of the ecliptic is defined by the orbit of the earth and the sun. For all practical purposes the plane of the equator and the plane of the ecliptic maintain a constant inclination relative to each other of approximately 23.5°. The plane of the horizon is centred on the native, and is tangential to the earth at that point. In a sphere whose radius is indefinitely large this plane may be treated as nearly equivalent to the parallel plane with its centre at the earth's center. This greatly simplifies understanding the geometry of the horoscope. Some writers on astrology have considered the effects of parallax, but most would agree that they are relatively minor; they are clearly beyond the scope of this article. The axis of the plane of the horizon has end points above, the zenith, and below, the nadir.

In common usage, the word horoscope also refers to the interpretation given by the astrologer about the calculated celestial bodies positions.

In order to understand and visualize the spherical geometry of how a horoscope is constructed, we need to begin with some basic terms.