Positional tracking refers to a system in a headset that determines its exact position. Tracking allows applications to synchronize your movements in the real world with those in the virtual environment.

Without positional tracking if you try to lean or move your head’s position, would not be tracked making the entire virtual world move with you, creating an unrealistic, bad virtual experience.  

There are multiple ways in which it can be executed. Varjo headsets achieve this in the following ways:

• SteamVR™ Tracking uses up to four SteamVR™ base stations to track your headset and optional controllers. SteamVR™ Tracking is available for all Varjo headsets.
• Varjo inside-out tracking (Beta) uses the built-in cameras of your headset to scan the room and keep track of your position. Varjo inside-out tracking (Beta) is available in Varjo XR-3.
• Third-party tracking methods can be integrated with all Varjo headsets.