Loose means not tight, not closely constrained or constricting. Loose is mainly an adjective used to describe things that are not tightly fitted. Where it is a verb, it means to release.
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Lose means to misplace something or cease to have either physically or in an abstract sense. It is only a verb. 'To lose' means to suffer loss or be deprived of something or fail to keep possession of.
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One simple and interesting way to remember the difference between the two words is to think that "loose has lost an 'o'".
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