A macro is just copied everywhere the preprocessor sees you using the macro keyword. It just copies the text, nothing more.
To elaborate on that a bit more, consider this example:
#define MY_MACRO a
int MY_MACRO = 5;
When the preprocessor comes along it will take the above and change it to:
int a = 5;
and then the compiler will come along and compile it like normal C/C++ code.
When you add arguments to your macro, they are just substituted in place within your macro. This can be a problem, consider the following two macros:
#define BAD_MACRO(a, b) a*b
#define GOOD_MACRO(a, b) (a)*(b)
They look almost the same, but consider the following:
int k = BAD_MACRO(2, 3); // k = 2*3 = 6
int j = GOOD_MACRO(2, 3); // j = 2*3 = 6
int m = BAD_MACRO(2+1, 3); // m = 2+1*3 = 5
int n = GOOD_MACRO(2+1, 3); // n = (2+1)*3 = 9
Although note that neither of these macros are good or bad, they just don't have the same behaviour as a typical function.