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A way of controlling the flow of data between a modem and its host computer and between two modems, also called software flow control. XON stands for “Transmitter On” and XOFF stands for “Transmitter Off”. If the modem receiving data needs time to process the data or do some other task, it sends an XOFF signal to the host computer (or sending modem). The host computer (or sending modem) then waits until it receives an XON signal before sending more data.