Abstract: A new and improved apparatus and method for phase detection in binary signal tracking loops wherein two bandpass detectors are alternately interchanged between electrical connection with two local code reference tracking signals in order to cancel any adverse effect of gain imbalance in the bandpass detectors and direct current offset or drift. The incoming signal is multiplied with the two local reference signals in a mixer circuit to form first and second product signals which are each separately provided to two bandpass detectors to form error signals. A dither generator controls a first switching circuit to alternately interconnect the two local reference signals to the mixer circuit during the step of multiplying and also controls a second switching circuit to alternately interconnect the error signals to a summing circuit to form a composite error signal representing a difference in levels of the two error signals from the detectors.