when you create a clustered index the data in the table is actually kept in the order of that index. Therefore you can only have one clistered index per table. A non clustered index consists of the index field(s) plus a pointer to the location of the data in the table.
Clustered indexes can be especially useful because the data is physically arranged that way, so for example if you have a name and address table where most of the queries are on 'lastname' creating a cluster index on 'lastname' would speed those up considerably. Also creating a clustered index on the parent key in a child table when most of the queries are 'give me a the children for this parent' works the same way.
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