Thermocouple compensation cables are used to avoid creating a thermal electromotive force (EMF) in the connection terminals. A temperature change in the terminals can change the readings. However, the transmitter should compensate for this difference automatically.
You have two ways to compensate for the cold junction, the electrical bridge method, and the thermoelectric refrigeration method.
Temperature transducer with thermocouple
This video will teach you more about temperature measurement:
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