You use the Paragraph panel (Window > Type > Paragraph) to change the formatting of columns and paragraphs. When type is selected or when the Type tool is active, you can also use options in the Control panel to format paragraphs.
For a video on working with character and paragraph styles, see www.adobe.com/go/vid0047.

A. Alignment and Justification B. Left Indent C. First Line Left Indent D. Space Before Paragraph E. Hyphenation F. Right Indent G. Space After Paragraph

By default, only the most commonly-used options in the Paragraph panel are visible. To show all options, choose Show Options from the panel menu. Alternatively, click the double triangle on the panel’s tab to cycle through the display sizes.
Text is justified when it is aligned with both edges. You can justify all text in a paragraph either including or excluding the last line.
You can precisely control how Adobe applications space letters and words and scale characters. Adjusting spacing is especially useful with justified type, although you can also adjust spacing for unjustified type.
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Enter values for Word Spacing, Letter Spacing, and Glyph Spacing. The Minimum and Maximum values define a range of acceptable spacing for justified paragraphs only. The Desired value defines the desired spacing for both justified and unjustified paragraphs:
Word Spacing
The space between words that results from pressing the spacebar. Word Spacing values can range from 0% to 1000%; at 100%, no additional space is added between words.
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Indention is the amount of space between text and the boundary of a type object. Indention affects only the selected paragraph or paragraphs, so you can easily set different indentions for different paragraphs.
You can set indents using the Tabs panel, the Control panel, or the Paragraph panel. When working with area type, you can also control indention using tabs or by changing the inset spacing for the type object.
Opomba:
When working with Japanese type, you can use the mojikumi setting instead of the Paragraph panel to specify the indent for the first line. If you specify the indent for the first line in the Paragraph panel, and specify mojikumi settings for the first line indent, the text is placed inside the total of both indents.
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To indent the entire paragraph one pica, type a value (such as 1p) in the Left Indent box
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To indent only the first line of a paragraph one pica, type a value (such as 1p) in the First Line Left Indent box
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To create a hanging indent of one pica, type a positive value (such as 1p) in the Left Indent box and type a negative value (such as ‑1p) in the First Line Left Indent box.
In a hanging indent, all the lines in a paragraph are indented except for the first line. Hanging indents are especially useful when you want to add inline graphics at the beginning of the paragraph, or when you want to create a bulleted list.

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Opomba:
If a paragraph begins at the top of a column, no extra space is added before the paragraph. In this case, you can increase the leading of the first line of the paragraph or change the inset spacing for the type object.
Hanging punctuation makes the edges of text appear more even by moving punctuation marks outside the paragraph margins.

Roman Hanging Punctuation
Controls the alignment of punctuation marks for a specific paragraph. When Roman Hanging Punctuation is turned on, the following characters appear 100% outside the margins: single quotes, double quotes, hyphens, periods, and commas; the following characters appear 50% outside the margins: asterisks, tildes, ellipses, en dashes, em dashes, colons, semicolons. To apply this setting, insert the cursor in the paragraph and select Roman Hanging Punctuation from the Paragraph panel menu.
Optical Margin Alignment
Controls the alignment of punctuation marks for all paragraphs within a type object. When Optical Margin Alignment is turned on, roman punctuation marks as well as the edges of letters (such as W and A) hang outside the text margins so that the type looks aligned. To apply this setting, select the type object and choose Type > Optical Margin Alignment.
Burasagari
Controls the alignment of double-byte punctuation marks (available in Chinese, Japanese, and Korean fonts). These punctuation marks are not affected by the Roman Hanging Punctuation option or Optical Margin Alignment option.
Keep in mind that the paragraph alignment determines the margin from which the punctuation hangs. For left-aligned and right-aligned paragraphs, punctuation hangs off the left and right margin, respectively. For top-aligned and bottom-aligned paragraphs, punctuation hangs off the top and bottom margin, respectively. For centered and justified paragraphs, punctuation hangs off both margins.
note: When a punctuation character is followed by a quotation mark, both characters hang.