A very simple motion transducer can be constructed using the circuit shown. The output is biased to one-half the supply voltage. This requires special interface circuitry for the signal readout. One simple method is to use a zero center meter in a bridge configuration. Displacement now can be measured as a positive or negative meter reading.
Readout sensitivity is a function of the particular LVDT and of the gain of the error amplifier. De offsets can be nulled by using a simple offset adjustment circuit as indicated.