What are swap in terms of Trading?

Question

please explain with example.

Answer 1

According to investopedia.com:

"Traditionally, the exchange of one security for another to change the maturity (bonds), quality of issues (stocks or bonds), or because investment objectives have changed. Recently, swaps have grown to include currency swaps and interest rate swaps."

If you go to the link given as my source you will find a number of different types of swaps listed under "RELATED TERMS". You can click on any of those links to get more information on that type of swap.

Answer 2

Swap is just another word for trade. Example: I will swap you my $100 watch for your $100 coin. We have just swapped items.