Eddy currents are created through a process called electromagnetic induction. When alternating current is applied to the conductor, such as copper wire, a magnetic field develops in and around the conductor. This magnetic field expands as the alternating current rises to maximum and collapses as the current is reduced to zero. If another electrical conductor is brought into the close   proximity to this changing magnetic field, current will be induced in this second conductor. Eddy currents are induced electrical currents that flow in a circular path. They get their name from “eddies” that are formed when a liquid or gas flows in a circular path around obstacles when conditions are right.