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GPS stands for Global Positioning System and allows you to know where on the world you are. With it, you have the ability to know your location on the globe. Positive X values are more to the east, negative X values are more to the west of this centre of the world. The same for the Y values: positive numbers are to the north, negative numbers to the south of this point.
The GPSD compass will point you to any entered X,Y location. It will guide you to the entered target location using a pointing arrow and also shows the remaining distance to that target.