The word exchange implies that you are going to receive an equal item in return. If you take an item to the store that is defective you will exchange it for a good but equal item. If you swap something, they are generally two different items. You may swap a baseball for a football. Each has value, but the value is in the eye of the beholder. In practice, the two words are often used interchangeably.

Hope below is helpful to you.... Quote : There is not much difference, except that "exchange" is used in more commercial and formal situations. I exchanged the sweater I bought for one of a larger size because it didn't fit. -> I would not use "swap" in this sentence. We exchanged places - > We swapped places. - the first is for more formal settings; the second very informal. A "swap meet" is a market where people exchange things that they have and don't want anymore. The stock exchange is where people buy and sell stock in an open market. The "credit default swaps" is one market that caused all the bank troubles because it was informal and private. Unquote: http://www.englishforums.com/English/DifferenceBetweenSwapExchange/hnhnm/post.htm

exchange and swap, both mean the same. an exchange of gifts or swapping presents both sound OK to me. Although, using "exchange" in this context sounds a bit more formal. So I'd rather say exchange instead of swap.

http://www.thefreedictionary.com/exchange http://www.thefreedictionary.com/swap You exchange gifts. You don't swap the.