UK election: What is meant by hung parliament in UK?

The exit polls are showing that Theresa May’s Conservative Party is set to fall short of an outright majority, which would result in a hung parliament. Here are some facts about hung parliament in UK and what happens in such a case,

• Hung parliament happens, when no party has won enough seats to have a majority in the House of Commons. With 650 seats in the House of Commons, a government needs the support of 326 MPs to have a working majority.
• In case of a hung parliament, Theresa may will continue to be the Prime Minister unless the new government is formed.
• She can continue to be the Prime Minister if majority of the MPs approve her Queen’s speech.
• In the case of hung parliament, a new prime minister could seek a confidence-and-supply deal with smaller parties.
• There's also the option of a minority coalition, where the governing party makes a formal agreement with a smaller party but together they still don't have a majority, meaning they have to seek support in the Commons for every vote.
• Theresa May could also try to govern with a minority government, however, in such a case she would run the risk of being voted down at any time.

The pound is continuing to recover. Up from 1.271 after the exit poll. Currently, it is trading at 1.279 against the dollar.