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Range, also known as reach, is a general term used to describe how far an attack's hitbox reaches relative to the attacker and can be described as how far an attack extends from a character when in a stationary position. For example, many of Marth's attacks have good range, as the length of his sword can hit opponents from a distance, leaving Marth himself in a safe spot. There are attacks that are considered to have "long" range when it is actually a character rushing ahead to attack. An example of this is Wolf's forward smash. On the other hand, many grabs have poor range; one must get in very close to be able to connect with them, which is usually risky to do. Attacks with disjointed hitboxes generally have more range. Projectiles in general have very long range.
Although various attacks have various ranges, certain characters tend to have longer reaches than others, allowing them to space more easily. For example, most characters with a weapon (sword, hammer, etc.) have longer range than ones who don't. Characters with short range are forced to approach more often, while those with longer range can afford to camp.