An IPS monitor uses an In-Plane Switching, or IPS panel. IPS is seen as the best panel type for a monitor. This has the widest viewing angle of all panels, so that the image doesn't fade when you move. IPS also ensures the best color rendering. This makes these screens very suitable for graphic work, watching movies, and gaming. The response time, the refresh rate, and the contrast of an IPS panel are reasonably good. You may have heard of a PLS monitor, which is almost identical to an IPS monitor.
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