Paint correction is leveling defects in the paint by removing thin layers of clear coat with sandpaper & liquid sandpaper aka compounds and polishes with a polisher/buffer machine. When the surface is smooth and leveled it allows light to reflect smoothly giving you a high gloss appearance. Swirls, scratches, etching, any paint defects will make it harder to see any gloss and may cause irreversible damage in the clear coat. 

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What is clear coat? 
Clear coat is a paper thin layer of clear paint over your vehicles color paint to allow us to fix any surface imperfections. It's important to care for the clearcoat to avoid repainting the whole vehicle prematurely. If the clearcoat is still fixable this is where paint correction comes in. 

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Polishing, compound, and sanding are 3 levels of paint correction. Each one is a different grit level that achieves different results and has their own limitations.

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Polish is refining light and surface imperfections such as buffer trails, light scratches, light etching, light water spots, first signs of oxidation and most commonly swirls marks. 

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Compounding is more abrasive than polishing. Its design to cut through light scuffs/scratches with
ease, etching, and severe oxidation. Compounding and polishing work hand in hand. After compounding it's ideal to polish out the paint after to give you the most gloss possible. 

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Sanding is the most aggressive out of the 3 mostly done by only focusing on the damaged area. The goal is to keep as much paint on the vehicle without risk of burn through (clear coat failure). If the scratches are too deep it will need to be touched up with paint. A good rule of thumb is your nail... if your nail catches the scratch when you scratch it, it should be retouched. 

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Its important to apply the proper paint protection to continue to care for your vehicles paint.

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Down below in the photo you'll find swirl marks/micro marring, light scuffs/scratches, deep scratches, buffer trails/pig tails/hologram, and etching