Symlinks are saved shortcuts for relative paths:
~/foo➤ ln -s . ~/bar/foo
~/foo➤ ls -l ~/bar
total 8
lrwxr-xr-x 1 me me 1B 15 May 14:38 foo -> .
The file ~/bar/foo is a symlink to bars current directory, i.e. itself
What if I want to create a symlink in another directory to the directory I'm in at the time? So in the above example, I'm in ~/foo and I want to create ~/bar/foo as a symlink to ~/foo. Of course my current directory might be quite a bit longer than 5 characters and might not be so easy to type.