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A round pen is used for training as the horse has no "corner" and thus has to round and soften, etc, etc. John Lyons brought them into style. Lots of people use them for short term turn out as they are pretty cheap and lightweight metal piping with a gate. They can also be expanded or made smaller by adding/removing panels. Normally it is used for longing, with or more commonly without an actual longe line, and especially for working green animals.
I still see them around, I've even used one for quite some time. They can be useful for keeping a trained horse on task, or keeping a green horse from possibly hurting themselves. The price has come down alot which helped make them more common as well.
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