Twisted pair
cabling is a form of wiring in which two conductors are wound together for the purposes of canceling out
electromagnetic interference (EMI) from external sources,
electromagnetic radiation from the UTP cable, and
crosstalk between neighboring pairs. Twisting wires decreases interference because the loop area between the wires (which determines the magnetic coupling into the signal) is reduced. In
balanced pair operation, the two wires typically carry equal and opposite signals (
differential mode) which are combined by addition at the destination. The common-mode noise from the two wires (mostly) cancel each other in this addition because the two wires have similar amounts of EMI that are 180 degrees out of phase. This results in the same effect as subtraction.
Differential mode also reduces
electromagnetic radiation from the cable, along with the
attenuation that it causes.
See more at Wikipedia.org...