I agree, Randy has it right. One terminal goes to a ground rod driven deep into wet dirt. The other terminal goes to the hot wire. The hot does not form a loop, it just goes straight out from that terminal. If you have two hots, then they are either both connected back to the terminal like the tines on a fork, or just run a jumper between them somewhere. All hot wires must be insulated from everything. They just hang in the air. The circuit is completed (a complete loop) when the animal that is standing on the ground reaches out and touches the hot wire. He completes the circuit and gets shocked doing it!
You know those spring loaded insulated gate hooks that you use when an electric fence has to pass a gate? Well, I test my fence by looking and listening for the small spark that buzzes when you hook those back up. Since the handles are insulated you don't get shocked...after all, that is how they are made to be used.
I've also seen cheap neon fence testers for a couple of bucks at the farm store. You touch the wire and if it lights the fence is working. But it will only tell you if it is working....not how well it is working. The buzzing of the gate hook is a better test for how well it is working.

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