What is the difference between an inbound link and an outbound link in SEO?

An inbound link, which is also known as a backlink, is the incoming link to your site from an external source. It comes from an external site to your site. Whereas, outbound link is a link that starts from your site and points to another website. For example, if xyz.com links to your domain, this link from xyz.com is an inbound or backlink for your domain. However, it is an outbound link for xyz.com. See the image given below:

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