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A terminal is an output device for a command line interface. In the past, they were often physical devices, like netsoc's vt320, but these days, it's more often what's called a terminal emulator. This is just a program on a computer that opens up a command line window, where you can type commands and see the results. On windows, people normally use putty, on OSX, there is a built in terminal.app, and on normal unix systems like linux, there is a wide variety of options, eg: xterm, urxvt, lxterminal, gnome-terminal, etc.