LISA is a space-borne, laser-interferometric gravitational-wave detect
or currently under study by the European Space Agency. We give a brief
introduction about the main features of the detector, concentrating o
n its one-year orbital motion around the Sun. We compute how the ampli
tude as well as the phase of a gravitational wave are modulated due to
this motion by transforming an arbitrary gravitational-wave signal in
a reference frame that is rigidly fixed to the arms of the detector.
To see how LISA works the detector response to a gravitational wave wh
ich is purely monochromatic in the barycentric frame will be discussed
. A brief review of the theory of parameter estimation, based on the w
ork of Finn and Cutler, will be given. Following this theory the detec
tion of a gravitational-wave signal buried in detector noise was simul
ated numerically. We interpret the results of this simulation to deter
mine the angular resolution of LISA.