A chord is a group of three or more notes played simultaneously. Different types of chords can be formed by using different combinations of notes. The most basic type of chord contains three different notes and is called a triad. The most common triads are major chords. All major chords contain three notes taken from the major scale bearing the same letter name as the chord. These three notes are the 1 (first), 3 (third) and 5 (fifth) degrees (notes) of the major scale, so the chord formula for the major chord is: 1 3 5. This is demonstrated with a C major triad (usually just called a C chord).
Once you have the correct notes for a C chord (or any chord) they can be arranged in any order. As long as the notes are still C, E and G, you still have a C chord. For example, a C chord could be played C E G, or E G C, or G C E, or even G E C. These various arrangements of the notes within a chord are called inversions. The following diagram shows a common way of playing a C major chord on the banjo.