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A relay is a smaller, more sensitive switch that is used to control low-power circuits, while a contactor is a larger, more robust switch that is used to control high-power circuits. Relays are typically used in control circuits to switch smaller loads, while contactors are used to switch larger loads such as motors or heaters. Both devices work by using an electromagnet to open or close the contacts, allowing or stopping the flow of electricity in a circuit.

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