Turn on Options|Auto Indent if you want the next line to automatically start at the same column position as the previous line whenever you press Enter on the keyboard while in the editor. EditPad will accomplish this by counting the number of spaces and tabs at the beginning of the previous line and inserting them at the beginning of the new line you created by pressing Enter. This is most useful for writing source code.
When Auto Indent is on, using the Backspace key when there is only whitespace to the left of the cursor either deletes a single space, or deletes multiple spaces to go back to the previous level of indentation. The "backspace unindents" option in the Cursor Preferences determines this.
Note that "auto indent" is a file type specific setting in EditPad. If you change the setting through the Options menu or the toolbar, it is applied to the active file only. If you create a new file or open an existing one, the setting made in File Type Editor Options for the type of file you are creating or opening, will be used. Also, when you use File|Save As, and you save the file with a new extension, then the setting for the current file will change into what you specified in File Types Preferences for the file type that corresponds with the file's new extension.
Configure File Types