Link Exchange (“Reciprocal Link Exchange”) is the practice of exchanging links with other websites. The simplest way of doing it is to email another website owner and ask to do a link exchange. You place their link on your site, usually on a links page and the other site in return will place a link back to you is know as link building services.
Link exchange has been a long time practice by the website owners since the beginning of the WWW. In the last few years (after year 2000), this practice has gained more popularity as search engines such as Google started favoring sites that had more links in the rankings.