Your Microsoft account (formerly your Windows Live ID) is the combination of an email address and a password that you use to sign in to services such as Xbox LIVE and Outlook.com, as well as devices such as Windows Phone and computers running Windows 8.
Did you know that you can use two-factor authentication too? Check it out at http://blogs.msdn.com/b/securitytipstalk/archive/2014/05/15/5-ways-to-protect-your-microsoft-account.aspx