Exchange interaction is like trading toys with your friends, but with a twist.
When you have two toys and your friend also has two toys, you might decide to exchange one toy each so that you both have a different pair of toys. This is a normal exchange.
However, in exchange interaction, imagine that you and your friend have magnets instead of toys. Magnets have poles, north and south, which determine how they interact with each other. Now, if you bring the north poles of both magnets close to each other, they will push apart because they are like charges. Similarly, if you bring south poles close, they will also push apart.
But, if you bring a north pole close to a south pole, something different happens. They will be attracted to each other and stick together. This is similar to what happens in exchange interaction.
In atoms, electrons have a property called spin, which is like a tiny magnet with north and south poles. When electrons with opposite spin come close to each other, they can share the same space and stick together. But this interaction causes energy to be exchanged by the electrons, which can create a variety of interesting phenomena in materials, such as magnetism and superconductivity.
So, in short, exchange interaction is like a toy trade where two electrons with opposite spin can stick together and exchange energy like magnets with opposite poles attracting each other.