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Lubrication is the process, or technique employed to reduce wear of one or both surfaces in close proximity, and moving relative to each other, by interposing a substance called Lubricants between the surfaces to carry or to help carry the load between the opposing surfaces.
Transmission fluid is a slippery liquid that acts as a lubricant for all of the moving parts inside your transmission. In an automatic transmission, this fluid also serves as a coolant and a viscous fluid that transmits power from the engine to the transmission. A variety of fluids are used for different transmissions.