A set of parameters called relative orbital elements were defined to describe the relative motion of the satellites in the formation flying. With the help of these parameters, the effect of the perturbations on the relative orbit trajectory and geometric properties of satellite formation can be easily analyzed. First,the relative orbital elements are derived, and pointed out: if the eccentricity of the leading satellite is a small value, the relative orbit trajectory is determined by the intersection between an elliptic cylinder and a plane in the leading satellite orbit frame reference; and the parameters that describe the elliptic cylinder and the plane can be used to obtain the relative orbit trajectory and the relative orbital elements. Second, by analyzing the effects of gravitational perturbations on the relative orbit using the relative orbital elements,it is found that the propagation of a relative orbit consists of two parts: one is the drift of the elliptic cylinder; and the other is the rotation of the plane resulted from the rotation of the normal of the plane. Meanwhile, the analytic formulae for the drift and rotation rates of a relative trajectory under gravitational perturbations are presented. Finally, the relative orbit trajectory and the corresponding changes were analyzed with respect to the J2 perturbation.