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When a microprocessor wants to store a byte of information in memory, or retrieve a byte of information from memory, it needs to refer to the address of the byte in the instruction. When direct addressing is used then the microprocessor instruction refers explicitly to the address that is to be used. When indirect addressing is used then the microprocessor instruction refers to a third object that refers to the address that is to be used. So, for example: Direct addressing: (*) Store the data at address 0x3C6E (*) Deliver the letter to house 12 on the street. Indirect addressing: (*) Store the data at whatever address is in register AX. (*) Deliver the letter to whichever house the occupant of house 7 tells you. So, in indirect addressing, the microprocessor instruction refers to some other "third-party" location (a register or another memory location) to find-out what the ultimate address to be used should be. The instruction does not contain all of the information needed to store the byte (or deliver the letter) but it does say where the missing information can be found. In direct addressing, the instruction contains all of the information needed to store the byte (or deliver the letter). This is basically true for all microprocessors but different microprocessors allow different forms of indirect addressing. For example, some use memory indirect addressing (the third party is another memory location), and some use register indirect addressing (the third party is a register).

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