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I don't think I've ever heard a diminished chord used in trance, but it certainly could be used. A vii-dim chord is used in a lot of music as a substitute for the V7 because the vii chord contains the same notes, particularly the diminished interval.
For example, if you're in the key of Cmaj, the V7 (dominant) chord is:
G-B-D-F
The diminished fifth interval between the B and F notes is what makes it so dissonant. That same interval is present in the vii chord:
B-D-F
Both chords have a strong tendency to resolve to the I chord because the B wants to resolve upwards to the C and the F wants to resolve down the E (i.e., the root and third of the tonic chord).
The same concept applies to minor keys. The dominant (V7) or vii chord is built on the major 7 note of the scale (from melodic or harmonic minor scale, rather than the natural minor scale, in which the 7th note of the scale is a minor 7 from the root). Again the B-D-F wants to resolve to the tonic, except that the F wants to resolve to the Eb (rather than E-natural), in Cmin.
Another thing to keep in mind is that the chord built on the 2nd note in a minor key (i.e., ii-dim chord) is also dimiinished and has a strong tendency to resolve to the III chord, but rarely used in EDM, pop/rock, etc.
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