Lotion is emulsified (blended) water and oil. Sometimes stabilizing agents are used to hold the water and oil together better. Water is the ultimate skin moisturizer and the oil functions as a barrier to stop the water from evaporating. By putting lotion on your skin, you are wetting the surface (this also opens the pores) and sealing the moisture in for a period of time (as long as the oil lasts on the surface of the skin).
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