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In addition to being able to change the amount of space between each character, that's called Kerning or Tracking, Kerning if you just have a cursor between two letters, Tracking if you have a range of characters selected, you can also change word spacing. So the amount of space between each word instead of each character. So let's show you that. Let's go ahead and triple-click to select this paragraph and then the keyboard shortcut is Command+Option+Backslash or Ctrl+Alt+Backslash on Windows. And take a look at the results here as I use the keyboard shortcut. At first it might look like Tracking, but if I keep doing this long enough, you will actually see that the space between each word is getting stretched out instead of just the space between each letter.
Now If you want to do this in larger increments, the rule of thumb is you add another modifier key to your existing keyboard shortcut. So in this case since I am already using Command+Option or Ctrl+Alt, I am going to add Shift. So hold all three keys down, Command+Option+Shift or Ctrl+Alt+Shift+Backslash to move the word spacing in much larger chunks. So it is five times the normal number without using that extra modifier key. So you can see it is useful when you have justified text and you want to just tighten up or loosen up the overall word spacing separate from the Kerning and Tracking values.
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