n. [O. Fr. exchange, eschange, N. Fr. échange, Pr. escambi, It. scambio, L. Lat. excambium. See supra.]
1Sense 1. The act of giving or taking one thing in return for another which is regarded as an equivalent; as, an exchange of cattle for grain; the act of substituting one thing in the place of another; as, an exchange of grief for joy, or of a scepter for a sword, and the like; also, the act of giving and receiving reciprocally; as, an exchange of civilities or views.
2Sense 2. The thing given in return for something received; or the thing received in return for what is given.
O, spare her life, and in exchange take mine. Dryden.
3Sense 3. (Com.) The process of settling accounts or debts between parties residing at a distance from each other, without the intervention of money, by exchanging orders or drafts, called bills of exchange, which may be drawn in one country and payable in another, when they are called foreign bills, or may be drawn and made payable in the same country, when they are called inland bills. The term bill of exchange is often abbreviated into exchange; as, to buy exchange; to sell exchange.
A in London is creditor to B in New York, and C in London owes D in New York a like sum. A in London draws a bill of exchange on B in New York; C in London purchases the bill, by which A receives his debt due from B in New York. C transmits the bill to D in New York, who receives the amount from B.
4Sense 4. (Law.) A mutual grant of equal interests, the one in consideration of the other. Estates exchanged must be equal in quantity, as fee-simple for fee-simple. Blackstone.
5Sense 5. The place where the merchants, brokers, and bankers of a city meet to transact business, at certain hours. In this sense, often contracted into 'Change.
Par of exchange, the established value of the coin or standard of value of one country when expressed in the coin or standard of another, as the value of the pound sterling in the currency of France or the United States. The par of exchange is invariable, and serves as a measure for the rise and fall of exchange that is affected by the demand and supply. Exchange is at par when, for example, a bill in New York, for the payment of one hundred pounds sterling in London, can be purchased for that sum. Exchange is in favor of a place when it can be purchased there at or above par.
Synonyms—Barter; dealing; trade; traffic; interchange; reciprocity.