You can add drop caps to one or more paragraphs at a time. The
drop cap’s baseline sits one or more lines below the baseline of
the first line of a paragraph.
You can also create a character style that can be applied to
the drop‑cap characters. For example, you can create a tall cap
(also called a raised cap) by specifying a
1‑line, 1‑character drop cap and applying a character style that
increases the size of the first letter.
One-character, three-line drop cap (left), and five-character,
two-line drop cap (right)
With the Type tool
selected, click in the paragraph where you want the drop cap to
appear.
In the Paragraph panel or Control panel,
type a number for Drop Cap Number Of Lines
to indicate the number of lines you want the drop cap to occupy.
For Drop Cap One Or More Characters ,
type the number of drop cap characters you want.
To apply a character style to the drop
cap character, choose Drop Caps And Nested Styles from the
Paragraph panel menu or the Control panel menu, and then choose
the character style you created.
You can also
use the Drop Caps And Nested Styles dialog box to align the
drop cap to the text edge, reducing the amount of space on
the left side of the drop cap, and adjust for drop cap
letters with descenders, such as “g” and “y.” If you want to
resize, skew, or change the typeface of the drop cap letter
for added effect, select the letter or letters and make the
formatting changes.
CONTROL YOUR PHOTOSHOP LAYERS
InDesign can place and output layered Photoshop files, but you can turn on
and off layers in that placed PSD directly within InDesign.
You can even have the same PSD in your document multiple times with
different layers turned on and off for different looks.
Go to File --> Place, navigate to your PSD, and click Open.
Choose Object>Object Layer Options and in the dialog that appears, turn
on Preview, and click the Eye icon on and off next to the desired layer to
control visibility.
TEXT WRAP ONLY AFFECTS
TEXT BENEATH
One of the most frustrating things that new InDesign users run into is
when they try to place a caption on top of a photo that has text wrap on
it. By default, text wrap also tries to text wrap your caption. Luckily
there’s a one-click fix. Go to InDesign (PC:
Edit)>Preferences>Composition. Enable the Text Wrap Only Affects Text
Beneath checkbox and click OK. Now you can place text on top of your
images with the text wrap where you want it.
You use the Knockout Group option in the Effects panel to make the
opacity and blending attributes of every object in the selected
group knock out—that is, visually block
out—underlying objects in the group. Only objects within the
selected group are knocked out. Objects beneath the selected group
are still affected by the blending or opacity that you apply to
objects within the group.
It is important to understand that you apply the blending modes
and opacity to the individual objects, but apply the Knockout Group
option to the group.
Group with Knockout Group option deselected (left) compared to
selected (right)
Apply the blending modes and opacity settings to the individual
objects that you want to knock out.
Using the Selection tool, select the objects that you want to
knock out.
Choose Object > Group.
In the Effects panel, select Knockout Group. (If the option is
not visible, select Show Options in the Effects panel menu.)
Create a drop cap
selected, click in the paragraph where you want the drop cap to
appear. 
to indicate the number of lines you want the drop cap to occupy.
,
type the number of drop cap characters you want. 
You can also
use the Drop Caps And Nested Styles dialog box to align the
drop cap to the text edge, reducing the amount of space on
the left side of the drop cap, and adjust for drop cap
letters with descenders, such as “g” and “y.” If you want to
resize, skew, or change the typeface of the drop cap letter
for added effect, select the letter or letters and make the
formatting changes.
