A list of terms and definitions you may find helpful.

Absolute Rotary EncoderAn electro-mechanical device which converts angular position into digital data that is retained when electrical power is removed. Can be also used to determine linear position, and speed/acceleration.
Alarm SignalServes to monitor the shaft encoder for malfunctions, such as glass breakage, short circuit and insufficient line voltage.
Analogue SignalAn output signal which alters continuously.
Baud RateRate of data transfer (bits per second). Often expressed in Mbaud i.e. 12 Mbaud.
Binary CodeCode using binary numbering often used for absolute measuring systems.
BitAbbreviation for "Binary Digit" where the logical value is expressed as 0 or 1 to give a yes or no decision.
BLDCBrush Less DC Motor
ByteA sequence of 8 bits.
CW or CCWClockwise or Counter Clockwise
ComplementaryAn electronic circuit with encoder outputs to invert two channels and express a voltage difference between two lines thus removing interference along transmission cables that connect an incremental encoder with its controller.
Data IntegrityCorrespondence of data with the reality they describe.
Incremental Rotary EncoderAn electro-mechanical device which converts angular position into data (normally pulses). Can also be used to determine linear position, speed & acceleration. Does not retain positional data on removal of power.
IPSee Protection Class
NPNTransistor input/output circuit implemented with NPN transistor, and thus negative switching.
Parallel InterfaceTransfer point at which the data is transferred in parallel over several lines.
PNPTransistor input/output circuit implemented with PNP transistor, and thus positive switching.
PPRPulses Per Revolution
Protection ClassAn IP rating is a two figure code number for example IP40, the first digit being the degree of protection against the ingress of solids and the second digit being the degree of protection against water.
PVCPolyvinylchloride; plastic coating of device cables.
Reference PulseSquare wave signal generated by a reference mark, usually only one increment wide to provide an absolute reference for an incremental encoder.
ResolverA device for monitoring speed and angular position of an electric motor, usually integrated on the rotor-shaft and sometimes known as a motor feedback controller.
SenseThe sense lines (Sense VCC and sense GND) enable measurement of the factual encoder voltage without adulteration by voltage drop due to supply current and cable resistivity. With that e.g. supply voltage can automatically be adjusted.
TorqueThe application of force acting at a radial distance from a central point causing rotation.
TPEThermo-plastic polyester elastomer; plastic coating of device cables.