tauschen
to exchange / swap
To give away an object, a service, or a position and receive something else in return from another person.
Die Kinder tauschen auf dem Schulhof ihre Sammelkarten.
The children swap their trading cards in the schoolyard.

to exchange / swap
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to exchange / swap
To give away an object, a service, or a position and receive something else in return from another person.
Die Kinder tauschen auf dem Schulhof ihre Sammelkarten.
The children swap their trading cards in the schoolyard.

When exchanging or swapping, the preposition 'mit' is often used for the person and 'gegen' for the item you receive in return. You can also simply use two accusative objects if the person is clear.
Ich tausche meinen Apfel gegen deine Banane.
I'll trade my apple for your banana.
Common things that people 'tauschen' are 'Plätze' (seats), 'Rollen' (roles), 'Telefonnummern' (phone numbers), or 'Blicke' (glances). It often describes a mutual action in which both parties give and take something.
Können wir bitte die Plätze tauschen? Ich möchte am Fenster sitzen.
Could we please swap seats? I'd like to sit by the window.
The reflexive form 'sich tauschen' for 'sich irren' (to be mistaken) is elevated and somewhat outdated. It is mainly found in written language, often in the fixed phrase 'wenn ich mich nicht tausche' (if I'm not mistaken).
Wenn ich mich nicht tausche, ist das der Herr Meier von gegenüber.
If I'm not mistaken, that is Mr. Meier from across the street.
to act / trade
'handeln' and 'tauschen' can both have to do with things changing hands between people. You use 'handeln' when goods are bought and sold or when someone negotiates over a price. Money usually plays an important role. You use 'tauschen' when one person gives something and gets something else in return, often without money. Learners may confuse the words because in both cases something changes owner. As a simple guide: when money, selling, or price is involved, 'handeln' is more likely to fit; for 'you get mine, I get yours', 'tauschen' fits.

Vor dem Termin tauscht er seinen Platz mit einer Kollegin.
Before the appointment, he swaps places with a colleague.
Auf dem Markt handelt Mehmet mit alten Büchern und kleinen Möbeln.
At the market, Mehmet trades in old books and small pieces of furniture.