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It's travelling forward through space at sufficient speed to balance out the effects of gravity. Either that - or it's sufficiently far enough from Earth that gravity cannot pull it back to the surface. Here's two examples.. a TV satellite and the GPS network.

In the case of a TV satellite - it needs to 'follow' the rotation of the Earth - so that it keeps transmitting TV to the same area on the planet. TV satellites are in low orbits - and thus need to move fast enough to stop gravity pulling them back to earth.

For the GPS network - the satellites need to remain stationary in orbit - in order for accurate data to be received by devices. The GPS satellites need to remain in a static position - and thus are orbiting far enough from the Earth that gravity doesn't affect them.

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