A fully diminished chord is a seven-note chord formed by stacking minor thirds on top of the root note, creating an intervallic structure that results in a dissonant sound. This type of chord can be found in various contexts, but it often appears in minor scales, where it serves as a leading tone chord that resolves to the tonic or another stable harmony. The unique sound of fully diminished chords adds tension and drama to musical compositions, especially within the framework of minor key progressions.