Electrical Machines
The compensating winding in a DC machine

  is located on pole shoes to avoid the sparking at the brushes.
 is located in armature slots for compensation of the armature reaction.
  is located on pole shoes for avoiding the flashover at the commutator.
 is located on commutating poles for improving commutation.

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Electrical Machines
Compensating windings are used in DC generators

  to provide path for the circulation of cooling air.
  mainly to reduce the eddy currents by providing local short circuit.
None of these
  to neutralize the cross magnetizing effect of the armature reaction.

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