About Virtual Space
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All editors support moving the cursor by one character position. The most common difference among text editors is whether you can move the cursor into a location that does not currently contain text. For example, if your cursor is on column 20 and there is no text on the line below the current line, moving the cursor down can do one of two things: Either the cursor moves to column 1 — because there is no text on the line below — or the cursor moves to column 20 of the next line. This behavior is called virtual space.
With the Text editor, you can treat text selection and space insertion in two ways. When you select the Virtual Spaces option, spaces are inserted between the end of the line and the insertion point before new characters are added to the line. When you clear the Virtual Spaces option, the Text editor behaves like Microsoft Word for Windows — the insertion point is set to the end of the line.