Modulation basically means using a phrase that is different in the source and target languages to convey the same idea: Te lo dejo means literally I leave it to you but translates much better as You can have it.  It obviously changes the semantics and shifts the point of view of the source language. Modulation help the translator generate a change in the point of view of the message without altering its meaning and without generating an unnatural feeling in the reader of the target text. More.

See: Translator Thoughts

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