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In-Ground Fence Wire
The wire carries the signal around the boundary. For the fencing system to work, it must form a loop, even if you are deploying the system only as a barried, or deterrent. (More information on in-ground fence layout options can be found on that article page.)
It is obvious that you need fence wire to carry the signal that transmits to your dog's collar, but there is also fence wire that cancels out, and will not transmit the signal to the electronic fence collar. The two types of wire are called signal wire, and twisted-pair wire.
You can see the two spools of wire in the following picture:
Signal wire is a single wire, normally 18, or 20 gauge, and insulated for both ground contact and burial. It is supplied in 500 feet spools of wire.
Signal wire runs around the enclosure and forms the signal boundary. It is the transmission from this wire that gets picked up by your dog's collar. The fence wire must always form a loop and even when you run the signal wire in a close loop, such as using it as a barrier, the wires must be kept a minimum of 6 feet apart. This is to prevent interference between the wires from canceling out the fence signal.
Twisted Pair Wire
Twisted-pair wire is two separately insulated wires wire, normally 18, or 20 gauge to match the signal wire. It too is insulated for both ground contact and burial and is normally supplied in 50 feet spools.
Earlier we talked about the need to keep the signal wire 6 feet apart from itself when you install it. This is to prevent electrical interference which could cancel out the fence signal at the that point. With twisted pair wire, the two wires are close together and twisted so that it will not broadcast to your dog's collar.
The twisted pair wire is used to continue the fence signal, but not form part of the fence enclosure. Normally it is used to get the fence signal from the transmitter, which is located inside, out to the signal boundary, located outside.