A compensation cable is a special type of cable used to extend the leads of thermocouples (temperature sensors) so as to transmit the thermoelectric signal to a measuring device while minimizing temperature errors and signal losses. The primary function of the compensation cable is to compensate for temperature differences that may occur between the thermocouple and the meter. The compensation cable uses materials that have similar thermoelectric characteristics to those of the thermocouple. The conductors in compensation cables are made of alloys that are not exactly the same as those of the thermocouple, but have similar thermoelectric characteristics over a limited temperature range. They are a more economical option and are used for shorter distances. Cable insulation material can be silicone (suitable for high temperature environments and good chemical resistance), PVC (suitable for lower temperature applications where flexibility and moisture resistance are required), Teflon or glass filament (used in environments with extreme temperatures, protecting the cable from mechanical and thermal loads), depending on the environment in which they will be used.