The mechanism by which conservative transposition occurs is called the "cut-and-paste" method, which involves five main steps:
# The transposase enzyme is bound to the inverted repeated sequences flanking the ends of the transposon Inverted repeats define the ends of transposons and provide recognition sites for transposase to bind.  
# The formation of the transposition complex In this step the DNA bends and folds into a pre-excision synaptic complex so the two transposases enzymes can interact.  
# The interaction of these transposases activates the complex; transposase makes double stranded breaks in the DNA and the transposon is fully excised.
# The transposase enzymes locate, recognize and bind to the target site within the target DNA. 
# Transposase creates a double stranded break in the DNA and integrates the transposon into the target site.
Both the excision and insertion of the transposon leaves single or double stranded gaps in the DNA, which are repaired by host enzymes such as DNA polymerase.