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indexing is when you line things up. I line up the logo printed on a bike tyre, or the pressure, with the valve, and a machinist or watchmaker might engineer their tolerances tightly enough by machining their own screws that the slot in each screw is on exactly the same plane when tightened. I haven't heard the term used when talking about lining up mosaic pins in a handle but the application of the word makes sense to me in that context.