The collar surrounds the edge of the coin during the striking process. It can be plain or reeded for most British circulation strikes. Coins that have lettering on the edge have had that placed there by a roller die before the coin was struck.
During the striking process, the blank will be fed into the coining chamber. If the doesn't fully fall within the chamber, only part of the collar will be embedded onto the edge of the coin.
A broadstrike coin has been struck without a collar at all. The circumference will be larger than a normal strike but it will weigh the same. Broadstrikes can often be confused with an off-centre. If the coin detail is complete, it is a broadstrike. If some of the design is missing, it is an off-centre.
The collar is a die so a broken collar is a major die break. The collar can fail over time and break away. This will result in a raised area on the edge of the coin but unlike the horizontal, crescent appearance of a partial collar, the broken collar may be in an isolated area or section.