How it work RTD with 3 wires?

3 wire gives more accuracy than 2 wire RTD. There are 3 terminals like shown in figure. The 2 red terminals has short. and it gives resistance value between white and any one of the red terminals. 2 red wires are there, one is the compensating wire to avoid the resistivity of the red, red and whit wires. so one of the red wire is also called as compensating wire/led.