The difference between baud (or signaling rate) and the data rate (or bit rate) is like a man using a single semaphore flag who can move his arm to a new position once each second, so his signaling rate (baud) is one symbol per second. The flag can be held in one of eight distinct positions: Straight up, 45° left, 90° left, 135° left, straight down (which is the rest state, where he is sending no signal), 135° right, 90° right, and 45° right. Each signal (symbol) carries three bits of information. It takes three binary digits to encode eight states. The data rate is three bits per second. In the Navy, more than one flag pattern and arm can be used at once, so the combinations of these produce many symbols, each conveying several bits, a higher data rate.