What is Barter?

Barter and its examples

Barter is the direct exchange of goods and services for goods and services. No one has to pay money when the barter occurs.

For example if Person A has 2 cars, and he wants to buy a truck then Person A will find a person who wants 2 cars and also has a truck to offer. Person A finds a man by the name of Person B who has a truck and wants to buy 2 cars.

Person A will give his 2 cars to Person B
Person B will give his truck to Person A

In this matter the trade happened but there was no money exchanged. It was a direct exchange of products.