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Subquery is a filter query within a filter condition. It's mainly used to filter data that can't used filter directly on the target object, especially a filter needs to put on a child object.
For example, to get all the accounts which has opportunity with opportunity type New Customer a subquery could be used in this situation.
Click on the (sq) icon to start a subquery.
Select opportunity object and Account ID field as the return field. Add a filter on opportunity type to limit data to New Customer type only.