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When you modify a file in your repository, the change is initially unstaged. In order to commit it, you must stage it—that is, add it to the index—using git add. When you make a commit, the changes that are committed are those that have been added to the index.

git reset changes, at minimum, where your current branch is pointing. The difference between --mixed and --soft is whether or not your index is also modified. So, if we're on branch master with this series of commits:

- A - B - C (master)

HEADpoints to C and the index matches C.

--soft