The third type of plate boundary occurs where tectonic plates slide horizontally past each other. This is known as a transform plate boundary. As the plates rub against each other, huge stresses are set up that can cause portions of the rock to break, resulting in earthquakes.he new magma (molten rock) rises and may erupt violently to form volcanoes, often building arcs of islands along the convergent boundary. These island arcs are always landward of the neighboring trenches. When two plates are moving away from each other, we call this a divergent plate boundary.