What is a Placement Group in EC2?

AWS provides an option of creating a Placement Group in EC2 to logically group the instances within as single Availability Zone.
We get the benefits of low network latency and high network throughput by using a Placement Group.
Placement Group is a free option as of now. When we stop an instance, it will run in same Placement Group in restart at a later point of time.
The biggest limitation of Placement Group is that we cannot add Instances from multiple availability zones to one Placement Group.

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