Oxidation state is a useful tool for keeping track of electron transfers. It is most commonly used in dealing with metals and especially with transition metals. Oxidation signifies a loss of electron...Oxidation state is a useful tool for keeping track of electron transfers. It is most commonly used in dealing with metals and especially with transition metals. Oxidation signifies a loss of electrons and reduction signifies a gain of electrons. Balancing redox reactions is an important step that changes in neutral, basic, and acidic solutions.