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When running interactively, Octave saves the commands you type in an internal buffer so that you can recall and edit them. Emacs and vi editing modes are available with Emacs keybindings enabled by default.
When Octave exits, the current command history is saved to the file ~/.octave_hist, and each time Octave starts, it inserts the contents of the ~/.octave_hist file in the history list so that it is easy to begin working where you left off.