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XQuery is similar to XSL stylesheets, both being capable of transforming an XML input into another format. You specify the input URL when you define the transformation scenario. The result can be saved and opened in the associated application. You can even run a FO processor on the output of an XQuery. The transformation scenarios may be shared between many XQuery files, are exported together with the XSLT scenarios and can be managed in the Configure Transformation Scenario dialog box ,or in the Scenarios view. The transformation can be performed on the XML document specified in the XML URL field, or, if this field is empty, the documents referenced from the query expression. The parameters of XQuery transforms must be set in the Parameters dialog box. Parameters that are in a namespace must be specified using the qualified name (for example, a param parameter in the http://www.oxygenxml.com/ns namespace must be set with the name {http://www.oxygenxml.com/ns}param).

The transformation uses one of the Saxon HE, Saxon PE, Saxon EE processors, a database connection (details can be found in the Working with Databases chapter - in the XQuery transformation section) or any XQuery processor that provides an XQJ API implementation.

The Saxon EE processor also supports XQuery 3.0 transformations.