The Pilot Arc type uses a two cycle approach to producing plasma. First, a high-voltage, low current circuit is used to initialize a very small high intensity spark within the torch body, thereby generating a small pocket of plasma gas. This is referred to as the pilot arc. The pilot arc has a return electrical path built into the torch head. The pilot arc will maintain until it is brought into proximity of the workpiece where it ignites the main plasma cutting arc. Plasma arcs are extremely hot and are in the range of 15,000 degrees Celsius.

Plasma is an effective means of cutting thin and thick materials alike. Hand held torches can usually cut up to 2 in (48 mm) thick steel plate, and stronger computer-controlled torches can pierce and cut steel up to 12 inches (300 mm) thick. Formerly, plasma cutters could only work on conductive materials, however new technologies allow the plasma ignition arc to be enclosed within the nozzle thus allowing the cutter to be used for non-conductive workpieces.

The HF Contact type typically found in budget machines uses a high frequency high voltage spark to ionise the air through the torch head and initiate an arc. The arc can only be formed if the torch is in contact with the job material. HF Contact type machines are not suitable for applications involving CNC cutting.