Exchange alludes to purchasing and offering of merchandise and administrations for cash or cash's worth. It includes exchange or trade of products and administrations for cash or cash's worth. The makers or maker creates the products, then proceeds onward to the wholesaler, then to retailer lastly to a definitive customer. 

Exchange is fundamental for fulfillment of human needs, Trade is directed not just for procuring benefit; it likewise gives administration to the purchasers. Exchange is an essential social action on the grounds that the general public needs continuous supply of merchandise always expanding and constantly changing however ceaseless human needs. Exchange has brought birth with the start of human life and might proceed the length of human life exists on the earth. It upgrades the way of life of buyers. Along these lines we can say that exchange is an essential social movement. 

Diverse Types of Trade 

Exchange can be partitioned into taking after two sorts 

Inside or Home or Domestic exchange. 

Outer or Foreign or International exchange 

Inside Trade 

Inside exchange is otherwise called Home exchange. It is directed inside the political and topographical limits of a nation. It can be at neighborhood level, local level or national level. Consequently exchange carried on among brokers of Delhi, Mumbai, and so on is called home exchange. 

Inside exchange can be further sub-isolated into two gatherings 

Wholesale Trade : It includes purchasing in vast amounts from makers or makers and offering in parts to retailers for resale to customers. The wholesaler is a connection amongst maker and retailer. A wholesaler involves conspicuous position since makers and retailers both are reliant upon him. Wholesaler go about as a mediator amongst makers and retailers. 

Retail Trade : It includes purchasing in littler parcels from the wholesalers and offering in little amounts to the buyers for individual use. The retailer is the last connection in the chain of dispersion. He sets up a connection amongst wholesalers and shoppers. There are distinctive sorts of retailers little and in addition huge. Little scale retailers incorporates vendors, pedlars, general shops, and so on. 

Outer Trade 

Outer exchange likewise called as Foreign exchange. It alludes to purchasing and offering between two or more nations. Case in point, If Mr.X who is a broker from Mumbai, offers his products to Mr.Y another dealer from New York then this is a case of remote exchange. 

Outside exchange can be further sub-partitioned into three gatherings 

Send out Trade : When a merchant from home nation offers his merchandise to a dealer situated in another nation, it is called trade exchange. For e.g. a dealer from India offers his merchandise to a broker situated in China. 

Import Trade : When a dealer in home nation acquires or buy merchandise from a broker situated in another nation, it is called import exchange. For e.g. a broker from India buy merchandise from a dealer situated in China. 

Entrepot Trade : When merchandise are transported in from one nation and afterward re-sent out subsequent to doing some handling, it is called entrepot exchange. In a word, it can be likewise called as re-fare of prepared imported products. For e.g. an indian broker (from India) buy some crude material or extra parts from a japanese dealer (from Japan), then amasses it i.e. change over into completed products and after that re-fare to an american dealer (in U.S.A) 

                        Source: http://buyandsellph.net/index.php/2016/03/15/what-is-trade-meaning-and-nature/